# Taxation



## Boyou (7 December 2007)

I have a Taxation question.

Is the tax payable on Capital gains when shares are sold less if you have held them for more than 12 months?
I did a search for a tax thread and found none..so hope I'm not doubling up on this subject.

Any help? Cheers


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## Hyperion (7 December 2007)

50% discount for individuals and trusts

33.33% discount for complying super funds


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## Boyou (7 December 2007)

Thanks Mucho, Hyperion


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## roland (7 December 2007)

.... and don't trust your accountant to get it right. Keep records and quizz who ever does your tax returns. No need to give Mr Rudd more than he is entitled to.


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## sparc (8 December 2007)

is it still treated as CGT, if you do day trades ?

thanks all


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## CATAPILLAR (8 December 2007)

My understanding of it is that if you day trade or trade shares like a business it's counted as "income" and tax accordingly.You  must keep records.
If it's a hobby and you buy and sell regularly (within 12mths) then the profit you make is added to your income  CGT comes into play. Just like if you bought a house and sold it for profit.


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## BlingBling (8 December 2007)

Hyperion said:


> 50% discount for individuals and trusts
> 
> 33.33% discount for complying super funds




I'm pretty sure trusts don't get the 50% discount.
I'll check my trust magic book...


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## simo (8 December 2007)

Is there a limit as to how many trades you can do in a year before you are considered to be trading as a bussiness and loose the 50% CGT concession.


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## Hyperion (8 December 2007)

BlingBling said:


> I'm pretty sure trusts don't get the 50% discount.
> I'll check my trust magic book...




*ITAA 97  s115-10*

115-10 To be a * discount capital gain, the * capital gain must be made by: 

(a) an individual; or 

(b) a * complying superannuation entity; or 

(c) a trust; or 

(d) a * life insurance company in relation to a * discount capital gain from a * CGT event in respect of a * CGT asset that is a * virtual PST asset.


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## BlingBling (8 December 2007)

Hyperion said:


> *ITAA 97  s115-10*
> 
> 115-10 To be a * discount capital gain, the * capital gain must be made by:
> 
> ...




That's good news.
Has it been recently changed?


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## Hyperion (8 December 2007)

BlingBling said:


> That's good news.
> Has it been recently changed?




Nah, its been like that for ages...


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## sptrawler (13 December 2018)

Tax on share trading. This article gave a good summary of the requirements to be classed as a share trader. Couldn't find a place to post it, so it landed here.

http://www.thebull.com.au/articles/...-shareholding-and-trading-as-an-investor.html


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## willy1111 (13 December 2018)

The ATO also provides guidance...

https://www.ato.gov.au/General/Capi...ng-as-investor-or-share-trading-as-business-/


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## SirRumpole (19 December 2018)

A new way of taxing companies, Cash Flow tax.

More revenue at lower rates.

Can it work ?

https://theconversation.com/heres-a...-replace-company-tax-with-cashflow-tax-108347


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## sptrawler (19 December 2018)

SirRumpole said:


> A new way of taxing companies, Cash Flow tax.
> 
> More revenue at lower rates.
> 
> ...




It sounds like the GST to me, they pay tax on everything coming in, and claim an offset on that going out.


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## willy1111 (19 December 2018)

SirRumpole said:


> A new way of taxing companies, Cash Flow tax.
> 
> More revenue at lower rates.
> 
> ...




To me it pretty much seems exactly what we have now with the exception of depreciation on capital purchases - their proposal is essentially a 100% write off on the new the item when it is purchased rather than over time as is the case now.

My suggestion, would be to introduce a low % based tax on deposits to bank accounts.  Ie 1 or 2% (some modelling would need to be done), tax on all monies that hit bank accounts - get rid of every other tax and no deductions.  The whole system would be simplified by doing this - much more efficient.  Every business that operates here or sells goods here must have an Australian bank account.  Every resident and person that lives here must have a bank account.  The 1 or 2% could be deducted from the account by the bank and passed directly to the ATO - no tax returns required.


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## sptrawler (19 December 2018)

willy1111 said:


> .
> My suggestion, would be to introduce a low % based tax on deposits to bank accounts.  Ie 1 or 2% (some modelling would need to be done), tax on all monies that hit bank accounts - get rid of every other tax and no deductions.  The whole system would be simplified by doing this - much more efficient.  Every business that operates here or sells goods here must have an Australian bank account.  Every resident and person that lives here must have a bank account.  The 1 or 2% could be deducted from the account by the bank and passed directly to the ATO - no tax returns required.



If I remember correctly, they used to have the bank deposit tax, they were called F.I.D and B.A.D taxes.


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## willy1111 (19 December 2018)

sptrawler said:


> If I remember correctly, they used to have the bank deposit tax, they were called F.I.D and B.A.D taxes.




Yeah...but they also had all the other taxes...I'd suggest bringing back something similar to the FID in a percent based form and getting rid of all other taxes, gst, exercise, company, income, cgt, payroll, etc, etc.


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## sptrawler (19 December 2018)

willy1111 said:


> Yeah...but they also had all the other taxes...I'd suggest bringing back something similar to the FID in a percent based form and getting rid of all other taxes, gst, exercise, company, income, cgt, payroll, etc, etc.



For that to work, they would have to get rid of the cash economy, as it would go balistic if all tax was collected at the bank level.
having said that, IMO it won't be long before we go cashless.


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## Skate (19 December 2018)

sptrawler said:


> For that to work, they would have to get rid of the cash economy, as it would go balistic if all tax was collected at the bank level.
> having said that, IMO it won't be long before we go cashless.




As a Bookmaker we were subjected to a turnover tax..

Win or lose the tax had to be remitted weekly.

Skate


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## qldfrog (22 September 2022)

Australia taxes workers and business more than other countries: OECD
					

Australia relies on taxing personal income and business profits more than any other advanced economy, a new report by the OECD says.




					www.afr.com


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## Telamelo (22 September 2022)

qldfrog said:


> Australia taxes workers and business more than other countries: OECD
> 
> 
> Australia relies on taxing personal income and business profits more than any other advanced economy, a new report by the OECD says.
> ...



Doesn't surprise me lol as we are one of the most taxed countries on earth


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