Ann: Trading Halt-PIO.AX, page-184

Let me clarify a little:

- I buy $20,000 of PIO.
- PIO grows and this initial $20,000 is now worth $100,000.
- I sell a value of $20,000 of PIO.
- I now have a portfolio of $80,000 of PIO that has cost me nothing.
In the eyes of the tax man I have not realised a profit or a loss this financial year so I don't pay CGT, nor can I claim a capital loss on anything.

In future if I decide to sell then all normal tax rules apply. If I wait longer than a year to sell then I also get the 50% CGT discount.