I got caught out withthis as share gains are part of your...

I got caught out withthis as share gains are part of your income.

Although it sounds like it, capital gains tax is not a separatetax. Your net capital gains form part of your assessable income in whateveryear your capital gains tax happened.

Capital gains tax is payable as part of your income tax assessmentfor the relevant income year.

Like real estate, shares arecategorised as a capital asset. They are also subject to capital gain and loss— as such, under ATO rules, shares are also subject to CGT. If shares are soldafter retirement, Capital Gains Tax still applies in Australia unless the assetis owned by an SMSF.

I live on what I make inshares and that is it.

Where do I stand regardingTAX, something I have to pay but at the right rate.

	Income thresholds	Rate	Tax payable on this income
1	$0 – $18,200	0%	Nil
2	$18,201 – $45,000	19%	19c for each $1 over $18,200
3	$45,001 – $120,000	32.5%	$5,092 plus 32.5c for each $1 over $45,000
4	$120,001 – $180,000	37%	$29,467 plus 37c for each $1 over $120,000
5	$180,001 and over	45%	$51,667 plus 45c for each $1 over $180,000