Basically, you don't pay tax on the 40c payment, but it reduces your cost base (what you paid for the shares).
SO if you paid $1.00 per share, from the ATO perspective your tax base is now $0.60 per share.
As a result, if you now sell the shares for $0.70, you have to pay capital gains tax on that $0.10 difference between cost price and sale price.
Hopefully that makes sense,
Basically, you don't pay tax on the 40c payment, but it reduces...
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50.5¢ |
Change
-0.005(0.98%) |
Mkt cap ! $46.66M | |||
| Open | High | Low | Value | Volume |
| 51.0¢ | 51.0¢ | 50.5¢ | $9.096K | 17.84K |
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| No. | Vol. | Price($) |
|---|---|---|
| 4 | 51345 | 50.5¢ |
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| Price($) | Vol. | No. |
|---|---|---|
| 51.0¢ | 60038 | 3 |
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| FAR (ASX) Chart |