Hi,
Get proper advice, but it fun, and cheaper, to try and work this all out first , and then present it to your accountant for approval.
$100k shares to be sold
Presume that they have been held for 1 year.
Presume income from shares was 37k[including franking credits]
capital gain 90k , discount 50%, 45k added to 37 k
Taxable income 82k
Australian income tax rates for 2018/2019 (residents)Income thresholdsRateTax payable on this income
$0 – $18,2000%Nil
$18,201 – $37,00019%19c for each $1 over $18,200
$37,001 – $90,00032.5%$3,572 plus 32.5% of amounts over $37,000
$90,001 – $180,00037%$20,797 plus 37% of amounts over $90,000
$180,000 and over45%
$54,097 plus 45% of amounts over $180,000
so tax payable $3572[for the 1st 37k] plus $14.625k for the 45k of discounted capital gain
Now, if you do the same calculation splitting the 100k into 2 lots of 50k k[say june and july sales], you alter the time when tax is paid, but not the rate. This is because the personal tax rate between 37k and 90k is the same.
So on the above scenario, her taxable income is $59.5k each year. Add the 2 years additional tax [over the presumed 37K base] and they are equal.[I have ignored medicare and any tax rate changes 18/19 to 20/21]
All of the above is moot, if the underlying assumptions are different.
If her base income is higher, that may push her into the 37c bracket for instance with 100k sale this year.
If labor's fc policy came in, that might change the strategy if she is at risk of losing some of those, but my typing finger would need a rest before I could take that one on.
Basically do a mock tax return for her for 18/19 and 19/20 using the sorts of variables above.
A calculator, the tax scales, paper and pencils, and in my case, a rubber , needed.
Please: anyone watching point out where I might have it wrong
cheers
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