Firstly if you defer the sale of an asset until after 30 June 2014 this will create a liability in the 2015 financial year.  Typically the tax liability will not be due until May 2016.

Also, in many cases if the asset is held for more than one year you will be eligible for the 50% CGT discount.

For example:

-    On the 01/05/2012 you purchased a parcel of shares for $5,000;

-    On 1/7/14 (more than one year later) you sell the parcel for $20,000;

-    The nominal gain is $15,000;

-    As you have held the asset for longer than one year you can apply the 50% discount;

-    Therefore the discount capital gain will be $7,500;

-    The $7,500 will be taxed at your marginal rate instead of the $15,000.

Section 115 - 100 of Income Tax Assessment Act 1997.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

Please refer to disclaimer at the bottom of the page.