next hour, page-39

It is very interesting to note that much of the Prima Biomed Hot copper forum sentiment has changed

Have you noticed it ?

...discussion has seemed to gone from Prima - will we make a profit to " what am I going to do with my profit / how do I minimse my tax ?

Most people in these forums need basic advice, although the Capital Gains Tax CGT scenario is a little complex if you do lots of trades, have losses, carry forward losses etc, combine with other income / offset etc, etc, etc

but basically .... and at the risk of confusing people.... a sample exercise

... if I make say a $20, 000 profit on my share sale that is sold within 12 months of buying it .... the whole $20,000 goes onto my tax return as income.
.... it is then taxed at whatever marginal rate I am up after my wages ....to eg 38c / $1 or 45c / $1

I am then taxed on the whole $20.000 , say @ $ 0.30 per dollar tax rate I will keep the other $0.70 per dollar
my overall ' keep' would therefore be $14,000 ( my nett profit )

( Julia gets the other $6,000 for buying a NBN network so we can all get quicker movie downloads to people who live in the outback )

.... however if I hang onto the shares for longer than 12 months, and then sell it for the sake of this exercise for a $20,000 profit

.... I receive a 50 % discount on my profit of $20,000 ( capital gain )... therefore on my $20,000 profit .... $ 10,000 I can keep ( no tax ) ... and then only the other $10,000 goes onto my tax return as income.

This $10.000 is then added to my other taxable income such as wages and then taxed at whatever rate Im up to, eg 38c in the $1

I am then taxed on only the $10.000 , say @ $ 0.30 per dollar tax rate I will keep the other $0.70 per dollar
my overall ' keep' would therefore be $7,000 after tax + the $10,000 I kept and my overall profit would be $17,000 ( my nett profit )

I therefore would be $3000 in front by keeping my shares and only selling them after holding them for 12 months

and Julia only gets $3,000 - interestingly enough , purely by coincidence, in this exercise I pay twice the amount tax if I sell before 12 months

please do not accept this as advice but only as a feeble attempt to help.