Ann: Market Update, page-104

Hi Dugsab,

I did not say 50% CGT, I said 50% CGT discount (if an asset is held 12 months or more). Big difference.

My point being that the tax system is more favourable to ‘buy and hold long’ long term investors as the tax on eventual sale is effectively half that of those who churn their portfolio.

I assumed Grizzy like most shareholders would own as an individual but if holding via super in the accumulation phase my point stands but to a lesser degree as tax rate is only 15% and discount percentage is 33.33% (again if held more than 12 months which effectively means the tax rate on a long term capital gain is 10%).

To cover the last base, subject to the transfer balance cap, if in pension phase of super there is no tax on investment earnings including realised capital gains.