Ann: Trading Halt-PIO.AX, page-166

Hi Mate,

You've definitely misunderstood.
If you hold shares for over a year you only pay CGT on 50% of your gains when you sell. If you hold a share for less than a year you have to pay tax on 100% of your earnings.

So lets say you make $40,000 on PIO, $20,000 of that you get to keep tax free (let's call it a reward for picking a great stock) and the other $20,000 you will have to pay tax on at your effective tax rate. Let's say you're effective tax rate ends up being 35% that means you pay $7,000 tax on your total gains.

I hope this makes it clearer.