Capital gains tax (CGT) is the tax you pay on any capital gain you make from a CGT event. It is not a separate tax, merely a component of your income tax. You are taxed on your net capital gain at your marginal tax rate.
Your net capital gain is:
your total capital gains for the year
your total capital losses (including any net capital losses from previous years)
any CGT discount and CGT small business concessions to which you are entitled.
Capital gains tax (CGT) events are the different types of transactions or events that may result in a capital gain or capital loss. Many CGT events involve a CGT asset while other CGT events relate directly to capital receipts (capital proceeds). There is a wide range of CGT events. Some happen often and affect many people while others are rare and affect only a few people.
It is important to consider the capital gains tax implications of a CGT event before it occurs. You should seek advice from your accountant at HHH Partners before entering into a contract for the sale of any CGT asset. We can provide you with an estimate of capital gains tax and also provide advice and discuss with you ways to minimise capital gains tax.