The CGT discount is a 50% reduction in the assessable capital gain available to individual Australian residents (and certain trusts) on capital gains arising from CGT assets held for at least 12 months. The CGT discount applies in addition to the small business CGT concessions where both are available, and the order in which they are applied affects the final tax outcome.
The discount does not apply to companies. Where a business is held in a corporate structure, the discount cannot be accessed at the entity level, which can affect the choice of deal structure (share sale vs asset sale) and the post-sale extraction of proceeds.