i hate this tax selling!!, page-15

Hardmono what you say is correct (for this answer ignore the 12 month 50% discount as I stagger my rolls every few months to overcome this) if you are doing for stock that in not designated as a traders account. Effectively you lock in your profit 1st July by selling (creates a taxable position of profit) you then repurchase and at the 29 June next year do 1 of 2 things dependant on whether you wish to increase or decrease your capital income for the financial year.

1. Sell stock that has lost (if HDR went to 50c)- reduces capital income for year

2. Sell stock in profit (hdr $5) if you whish to increase your capital income.

Why ever pick option 2 and not just hold the stock forever and never pay CGT until you finally sell it all??

Well if you do this correctly you can smooth your personal income (still get 50% CGT disc) rather than have a huge lump sum at the end of 5 years of ownership and not feel like selling stock because of the tax bill.

Don't know if I have made the above clear and it is only relevant for stock held for tax purposes in a non trading account.