- Home first used for rental or business in last 12 months:
If the asset is your home and you started using it for rental or business less than 12 months before disposing of it, you can't use the CGT discount.
- Foreign residents:
The full CGT discount cannot be used for capital gains made by foreign or temporary residents after 8 May 2012.
- Disposal of interest in a non-widely held entity:
The CGT discount may be denied when you dispose of certain shares or trust interests in non-widely held companies and trusts. These are companies and trusts with fewer than 300 members.
- Conversion of income asset
If an income asset is converted into a capital asset for the purposes of claiming the CGT discount, the discount may be denied
Source: ATO