In Australia, Capital Gain Tax (CGT) was introduced on September 20, 1985. The tax is applied only on assets acquired on or after that date.
CGT was introduced to reduce the inconsistency between income taxation and wealth taxation. To know more details about CGT, you can hire professional Tax Accountant in Sydney, North Sydney & Chatswood.
What is the Capital Income Tax (CGT)?
This is not a separate tax, as it is a part of your income tax liability. CGT is the tax you pay for the difference between the amount you sell an asset and the amount you have paid for that.
In the context of Australian taxation system, tax is applied to capital gains made on disposals of assets, except for specific exceptions (e.g. the major exemption is a family home).
What is the Capital Gain?
This will take place when capital assets are sold at a price higher than your costs. For instance:
1) When you sell assets more than what you pay for, this is referred to as "capital gain".
2) If you sell assets for less than what you paid for, this is referred to as "capital loss".
Whether you get capital gains or not depends on the purchase price of an asset compared to the selling price.
Why to take the help of a Financial Broker?
Every financial decision requires time and expertise. That's because even a small mistake can be very detrimental to you. So, it's wise to seek expert advice from a financial broker. Contact a professional broker who has a thorough knowledge of Capital Income Tax.