Income tax planning

A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realised on the sale of an asset that was purchased at a lower price. The most common capital gains are realised from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax.

Australia

Capital gains tax in Australia is only payable upon realised capital gains, except for certain provisions relating to deferred-interest debt such as zero coupon bonds. The tax is not separate in its own right, but forms part of the income tax system. The proceeds of an asset sold less its 'cost base' (the original cost plus add-ons over time) are the capital gain. Receive continued access to knowledgeable advisors who. Discounts and other concessions apply to certain taxpayers in varying circumstances. From the 21st of September 1999, the 50% capital gains tax discount has been in place for individuals and some trusts that acquired the asset after that time. The amount left after applying the discount is added to the assessable income of the taxpayer for that financial year.

For individuals, the most signficant exemption is the family home. The sale of personal residential property is normally exempt from Capital Gains Tax, except for gains realised during any period in which the property was not being used as your personal residence (for example, being leased to other tenants).