Guide to capital gains tax 2021

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Tax Incentives for affordable housing

On 12 December 2019, the CGT law was amended to allow an additional CGT discount of up to 10% to Australian resident individuals who provide affordable rental housing to people earning low to moderate income. This increases the CGT discount percentage to up to 60% for qualifying owners of these residential rental properties.

To qualify, you must have provided affordable housing:

• on or after 1 January 2018 for a period or periods totalling at least three years (1,095 days), which may be aggregate usage over different periods, and
• either directly, or from a trust including where there is a interposed entity between you and the trust. The trust that provides the affordable housing and any interposed entities may be a trust, a managed investment trust or partnership, but cannot be a public unit trust or superannuation fund.

The number of days you may have provided affordable housing before 1 January 2018 will not be counted.

See also:

• CGT discount for affordable housing

ATO references:
NO NAT 4151