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| *Ostroff, Fair and Company>>>Australia Taxes |
Do you have to pay tax on all capital gains in Australia no matter how much they're worth? |
Do you have to pay tax on all capital gains in Australia no matter how much they're worth? There is no,limit on the amount of a capital gain. Your own home is exempt from capital gains tax, provided you live in it. Anything purchased prior to capital gains being introduced (1985) is also exempt. If held in personal names, half the gain is added to your taxable income in the year the gain is made. Companies pay on the whole gain. CGT in super funds is taxed at 10%, rather than the full 15%. If the asset is held for less than 12 months, then CGT rules do not apply, the entire gain is taxable. Methods to minimise the gain include: 1. Use capital losses to offset 2. Take the gain in a year when income is low. Your tax rate is low, therefore CGT is also low. (see # 4) 3. Take the gain over a number of years. (Good for shares, not practical for property) 4. Salary sacrifice income, so tax rate is lower on capital gain. Best advice is to see a qualified financial planner / accountant. There are more rules, exceptions etc that may apply to your situation. Each case is different and needs to be fully investigated. It may cost a few dollars, but it's worth it if it saves you thousands in tax. Source(s): Dip FP, Dip Fin Advising (Sec Inst), SA Fin |
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