Blur - I'm no tax expert!IMO if you buy and then sell after 1...

Blur - I'm no tax expert!

IMO if you buy and then sell after 1 year the amount of the gain is effectively in half, or 50%.

So if you made say $20,000 gain, then $10,000 would be added to your income and be taxed at marginal rates. Whatever your highest marginal rate is will be the tax rate, unless this gain takes you into a higher bracket and then of course it will be a little tad more.

You can offset your losses from other investments to counter the overall gain, and that is why you may have seen some posts about selling before the end of June to trap these losses and to be used against other gains for the current year. Commonly known as end of year housekeeping :-)

Hope this assists, but please do validate my thoughts!

This is NOT tax advice.

Below are some of the ATO words.

http://www.ato.gov.au/content/00208572.htm
Overview
A capital gain - or capital loss - is the difference between what it cost you to get an asset and what you received when you disposed of it.

You pay tax on your capital gains. It forms part of your income tax and is not considered a separate tax, although it is generally referred to as capital gains tax (CGT).

If you make a capital loss, you cannot claim it against income but you can use it to reduce a capital gain in the same income year. If your capital losses exceed your capital gains or you make a capital loss in an income year you don't have a capital gain, you can generally carry the loss forward and deduct it against capital gains in future years.
All assets you've acquired since tax on capital gains came into effect (on 20 September 1985) are subject to CGT unless specifically excluded.

Selling assets such as real estate or shares is the most common way you make a capital gain or capital loss. CGT also applies to intangible assets such as business goodwill.

Some of your main personal assets are exempt from CGT, including your home, car, and most personal use assets, such as furniture. CGT also doesn't apply to depreciating assets used solely for taxable purposes, such as business equipment or fittings in a rental property.

If you're an Australian resident, CGT applies to your assets anywhere in the world.


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If you own an asset for 12 months before you dispose of it, you may be able to reduce the amount of your capital gain.

CGT discount:
For assets held for 12 months or more before the relevant CGT event.
Allows you to reduce your capital gain by:
50% for individuals (including partners in partnerships) and trusts
33 1/3% for complying super funds.