General Discussion Topics, page-104816

Yes Able is right, you don't pay 45% on the whole gain guys, unless of course you are already earning over $180k a year as Scroll stated, in that case you obviously do pay the highest rate on the whole because it's based on your whole assessable income.

In this example, if your only income for the year was from capital gains and that was $200k, then yes you would pay $51,667 plus 45c per dollar over $180k (so $9000), so a total of $60,667 tax in total on the $200k.

Hope that explains it.

For your reference:

Taxable income

Tax on this income

0 – $18,200
Nil

$18,200 - $45,000

19c for each $1 over $18,200

$45,001 - $120,000

$5,092 plus 32.5 cents for each $1 over $45,000

$121,000 - $180,000

$29,467 plus 37 cents for each $1 over $120,000

$180,001 and over

$51,667 plus 45 cents for each $1 over $180,000