Completely agree. If you hold non liquid assets, like a farm, then there could easily be a cash flow problem.
The one place I could see accepting a tax on the capital gain of an unrealised asset "could" be useful is where you might be holding for a long duration asset and don't want to sell because the future looks rosy, but don't want to suffer a large capital gain income when you eventually sell. So staging unrealised gain tax periodically may result in lower total tax than an eventual single sale, and therefore tax payment, in a good income year.
Wouldn't be my choice however - relies too much on being able to predict the future.
CBA Price at posting:
$175.95 Sentiment: None Disclosure: Not Held
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