Capital gains tax

Capital gains tax (CGT) applies when you sell an asset, such as property, shares or business goodwill.
• The capital gain is the difference between what you sold the asset for and what you purchased the asset for.• Some other costs that have not been otherwise claimed can reduce a capital gain (such as purchase costs, ownership costs, improvements and selling costs).• If you’ve owned the asset for more than 12 months you may be eligible for a 50% CGT discount. (This is not available for assets owned by a company).• The capital gain is added to your assessable income for the financial year it is sold and taxed at your marginal rate.• There are some concessions available for small business assets that may reduce or eliminate the tax payable on a gain subject to specific eligibility rules.• The 4 CGT concessions are : 15 year exemption, 50% active asset reduction, retirement exemption and rollover relief.• Depreciable assets (such as business equipment, vehicles or tools) are not subject to capital gains tax, the profit on sale is included in your ordinary income.

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I’m Sharon, a registered BAS agent and QuickBooks Certified Advanced with more than 20 years' experience in the industry.Get in touch to find out how I can support you and your business to stay on top of your numbers to run a successful business.
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