Australian (ASX) Stock Market Forum

Question on CGT for individuals (1 Viewer)

Joined
Feb 27, 2016
Posts
4
Reactions
0
how does the taxation office tract your CGT on stocks?

so if I earn less than 18k in a year from work and then gained 1k from stock, does that mean that the 19c from every dollar will be deducted on the 19k?

ATO has a table of the threshold for individuals. 18k above is the starting..

I'm confused on how this work. Can someone please explain to me all the details that I need to learn about CGT. Thank you
 

galumay

learner
Joined
Sep 17, 2011
Posts
2,523
Reactions
1,082
how does the taxation office tract your CGT on stocks?

so if I earn less than 18k in a year from work and then gained 1k from stock, does that mean that the 19c from every dollar will be deducted on the 19k?

ATO has a table of the threshold for individuals. 18k above is the starting..

I'm confused on how this work. Can someone please explain to me all the details that I need to learn about CGT. Thank you

If you make a capital gain on shares that you have held for less than 12 months, you will pay CGT at your marginal rate, so if you taxable income is less than $18K, add the capital gain to get a total figure for income, calculate tax.

If you have held them more than 12 months then the gain will be discounted by 50% and then the marginal tax rate applied. So again, if you earn less than $18k, add your discounted capital gain to income to get total income, then calculate marginal tax rate.

The easiest way to understand it is that while the capital gain is calculated separately, its considered income and added to any other income for the purpose of calculating tax owed.
 
Joined
Dec 8, 2014
Posts
60
Reactions
0
With regard to the 50% CGT discount for assets held over 12 months, does one just calculate it oneself and fill in the tax return accordingly or does the ATO apply this discount for you after you have submitted your CG for the year?
 
Joined
Nov 15, 2006
Posts
1,183
Reactions
613
With regard to the 50% CGT discount for assets held over 12 months, does one just calculate it oneself and fill in the tax return accordingly or does the ATO apply this discount for you after you have submitted your CG for the year?

I believe that when you fill in your return, you need to include the dates when you bought and sold the shares....this facilitates the calculation, so the discount should be taken into account in the estimate when you lodge.
 
Joined
Dec 8, 2014
Posts
60
Reactions
0
I believe that when you fill in your return, you need to include the dates when you bought and sold the shares....this facilitates the calculation, so the discount should be taken into account in the estimate when you lodge.

Thanks Junior

Getting close to tax time again and many CG to put in the form this year. :)
 

Users who are viewing this thread

Top