CGT when income <$6,000? - Aussie Stock Forums

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  1. #1

    Default CGT when income <$6,000?

    Hi everyone, I'm just a young lad trying to get a start on investing, and as I understand, we have to pay CGT on shares, but what if I'm unemployeed and my total gains are under the minimum bracket of $6,000? Do I still have to pay tax? Thanks!

  2. #2

    Default Re: CGT when income <$6,000?

    It depends on your total income including unemployment benefit and any other earnings you may have.
    Probably have to check if your capital gains also affect your unemployment benefit, if you're claiming it.

    Suggest you check the ATO website as a first step.

  3. #3

    Default Re: CGT when income <$6,000?

    From my understanding you are taxed on your overall income. It doesn't matter if you earn 50k a year from work or you make 50k a year profit from share trading. You are taxed the same amount assuming everything else on your tax form is the same. So short answer no you don't pay tax except for the g.s.t. included in brokerage fees.

    The long answer is that the amount of capital gains you make for tax purposes varies depending on how long you hold shares and whether it is classified as investing or trading. If you hold the same parcel of shares for less than 1 year then the capital gains is simply the profit your making. Dividends with franking credits from companies also affect taxation generally by lowering the tax you have to pay.

    Considering you are asking the question in this forum instead of going to the ATO website and researching the information yourself I would be more worried of making a capital loss, therefore I suggest you look up the info on the ATO website regardless since capital losses can be carried forward.

  4. #4

    Default Re: CGT when income <$6,000?

    Here's a link to a summary of the changes to the tax free threshold announced last year and due to take effect with the introduction of the carbon tax.


    As the writer points out, it's a bit of smoke and mirrors from the government because they will be removing the low income tax offset which has previously effectively raised the no tax level to around $16,000.

    I'd suggest a phone call to the ATO to clarify if necessary.

    And Klimer, it looks as though you will not have to pay tax. However, if you work out that you don't, take the time to write to the ATO stating that you will not be completing a tax return because you have earned under the assessable limit.

    Good on you for thinking about your financial future.

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