The 50% tax? This is an incorrect view. Its is based on personal income tax thresholds.
This is how I see it.
Say you convert 100,000 shares at a dollar and sold 100,000 shares at $2.00
You make $200,000 of which $100,000 is profit. Now Assuming that you spent $50,000 in acquiring the 2007 options which now considered as capital loss the $100,000 profit is off-set by the $50,000 loss and hence the tax applicable is on the $50,000, under the CGT rules.
Assuming you earn 40,000 pa you then add in the Capital Gain of $50,000 profit, which is then applied to the income tax brackets below.
Tax applicable @ 40,000 = $6,599
= 17,500 + (40% of 14,999 = 5,999) =22,999
A $50,000 profit has a taxable implication of $16,400
I'm not an accountant or a qualified professional in taxation matters, so I suggest you refer back to the Australian Tax Office or a qualified professional.
http://www.ato.gov.au/
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Tax rates 2007-08
Taxable income Tax on this income
$1 – $6,000 Nil
$6,001 – $30,000 15c for each $1 over $6,000
$30,001 – $75,000 $3,600 plus 30c for each $1 over $30,000
$75,001 – $150,000 $17,100 plus 40c for each $1 over $75,000
$150,001 and over $47,100 plus 45c for each $1 over $150,000
RRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
