capital gains/neg gearing

[fitguy]

hello everyone.
just wondered if anyone knows how the new capital gains tax works?also heard on news something about the govt considering abolishing neg gearing(again!)anyone know anymore on this subject?
thanks

[XBenX]

what you would have heard was the leader of the opposition slapping one of the shadow cabinet members for even contemplating the idea - let alone mention it to the media.

political and economic suicide I feel

[Garry K]

Hi fitguy

The CGT now (for assets acquired after 21/9/99) is simply that if the asset has been held for at east 12 months, 50% of the nominal gain is assessed as income and you pay tax on that depending on what your marginal tax rate is, after adding on any other assessable income.

eg your capital gain is $80K
$40K (50%) is assessable income.
If you have no other income MTR on $40K is 30%
If you had other income, total plus CG $40K is > $62,500, MTR is 47%.
Plus medicare 1.5% on both.

You can offset Capital losses from this or previous years against capital gains.

In calculating nominal gain make sure you allow for purchase costs ets to establish to correct cost base.

Geekay