I wouldn't cut it to a 33% discount -- I'd remove the CGT discount altogether, or increase the timeframe from 1 year to 5 years.
"The 50 per cent discount was introduced in 1999. It replaced an arrangement 1985 whereby the capital gain to be included in taxable income could was adjusted for price inflation. ..."
"Negative gearing – or deducting losses incurred in the process of earning income – is a feature of most tax systems."
"However, Australia's CGT discount is generous by international standards."