Tax Info - Capital Gains Tax

If you dispose of a capital asset, e.g. property, car, shares etc... and make a profit on it, you have made a capital gain which is taxable, under the current rules, at your marginal rate on half the gain. Companies are not entitled to the discount and Superannuation funds are entitled to 33.3% discount.

You can use the Capital Gain or Capital Loss worksheet to calculate a capital gain or loss for each CGT event. Every          CGT asset that has resulted in a CGT event should be categorised as follows:

• Real estate;
• Other CGT assets (including personal use assets) and any other CGT events; and
• Collectables.

Capital gains events should be treated as follows:

• The Indexation method for a capital gain made on a CGT assets which was acquired before 21 September 1999 and which was owned for at least 12 months, or
• The Discount method is used for assets which have been owned for at least 12 months and for which you are not using the indexation method; or
• The 'Other' method is merely the entire gain taxed at your marginal rate where indexation or discount do not apply.

These methods of treatment are explained in full in the Guide to Capital Gains Tax.

There are a number of CGT "Small Business Concessions" that apply to capital gains derived from active assets and these concessions are explained in the Guide to Capital Gains Tax Concessions for small business.

More information about CGT can be sourced in the Capital Gains Tax section on the ATO website and the guide to Capital Gains Tax on site.