Hi All, If a person is on a personal income of $150k this financial year (i.e. 37c per $1 tax bracket) and sells a property in NSW and makes $150k profit after expenses, does it carry her capital gains into the highest tax bracket (i.e. 45c per $1)? She is also eligible for the 50% CGT discount too Also, when is CGT payable? After personal tax returns are lodged? Thank you.
irrelevant where the property is. CGT after all expenses is then discounted and that figure is added to other income for the year. prob $75k in this case if property held more than 12 months. Payable after ATO issues a notice of assessment which is issued after lodging
CGT is not an additional tax but is a element of the taxation regime that adds additional income to the taxpayer. This can not only result in taxation at a higher marginal rate it can also lead to other levies and consequences : eg - Div 293 tax - Medicare Levy Surcharge - Private Health insurance tax offset - Net medical expenses tax offset at a different rate and threshold - Centrelink benefits (Family Tax Benefit) - HECS / Help debt repayments - Can adversely affect PAYG instalment calculations in some instances
Yes...(as was the flood levy)... At least the budget repair levy was forward dated a year and not retrospective across a broad class of taxpayers.
