Hi Team,
I signed the contract of sale for land on 23/08/2024 & Land Settlement was done on 25/07/2025 with land purchase price $400K. Construction contract was signed soon after settlement and Handover was provided on 06/05/2026 with total construction cost of $450K.
If I were to sell the house on 26/07/2026 at $1M, will I be eligible for 50%CGT discount for 12 months i.e. 50% CGT discount applicable to capital gain of $150K?
Eligibility for discount:
"When you sell or otherwise dispose of an asset, you can reduce your capital gain by 50%, if both of the following apply:
CGT discount | Australian Taxation Office
Asset is the property. (land + any structure attached to the land). Contract date on purchase is used for acquisition date so you have owned the asset for longer than 12 months. Only need to qualify on second dot point to be eligible for discount.
Acquiring CGT assets | Australian Taxation Office
But why would you need to pay any tax?
If you haved moved into the property and you make it your home for at least 3 months it would be exempt from CGT.
Building or renovating your home | Australian Taxation Office
Unless you own another residence or this is a business activity.
You would then need to consider what the tax consequences on sale may be.
Tax consequences on sales of property | Australian Taxation Office
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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