I have also been contemplating the future and how to divest myself of these shares over the last few weeks, as a long term holder of significant parcels of ESI and ESIOB's I looked into my tax situation with my "Spreadsheet -What-if" scenarios" and anything over $0.04c starts to look like significant capital gains tax. However, I am lucky enough to still be working at 65, and looked at the situation re CG on earnings in my super fund.
If you are in "accumulation" phase you have to pay tax at 10% if held for 12 mths. However, if you are retired and your fund is in "pension mode" then you pay 0% tax on CG.!! So I seriously have to consider my employment situation in relation to my super fund... Timing on selling will be determined on price target reached and handing in resignation, so I can sell while in "pension" mode ...I look at it as a nice dilemma to have.
Tax-exempt earnings in pension phase
If your super account is in
pension phase, that is, you’re receiving an income stream from your SMSF account, then no tax is payable on earnings from fund assets financing a SMSF pension. The tax exempt treatment of fund earnings financing a pension also includes any capital gains (which means the capital gains in
pension phase are exempt from tax).
Taxable earnings in accumulation phase
If you have not yet started an income stream, that is, your super account is in
accumulation phase, then
earnings taxis payable on fund earnings, including any capital gains. If you have held the fund asset for less than 12 months, then 15% earnings tax is payable on any capital gain. If you have held the fund asset for 12 months or more, then the tax on capital gains is discounted by 33.3%, which means you pay an effective rate of tax of 10% on capital gains.
For example, say an SMSF purchased an asset for $200,000 (including buying costs) several years ago, and then sold the asset for net proceeds of $300,000 (after selling costs have been deducted). The SMSF has made a capital gain of $100,000 which is counted as fund earnings. Due the length of time the SMSF held the asset the capital gain is eligible for the CGT discount, which means the SMSF pays $10,000 CGT on the $100,000 capital gain.
Link below to site for the above info. for those interested in SMSF's
SMSF Calcs
I guess tomorrow we find out one way or another, either suspension... or announcement?
GLTA..
Cheers
(20min delay)