
In late 1999 the government introduced new rules on how to calculate and tax capital gains. It introduced generous concessions including a 50% discount if the capital gain made was in an individuals name.
Investors need to know that there are alternative ways to go about buying investment assets like property. They need to know that there are more tax effective, efficient and more flexible structures that offer more to protect and shelter your hard earned investments from litigation. Most investors simply just don’t know what’s out there!
We have discovered that in the majority of cases investors are not seeking adequate advice or are settling for an easy answer and as a result the majority of investment assets are purchased in the names of natural persons.
Many people are also incorporating companies with which to purchase appreciating assets. This is most certainly the wrong choice and investors should be very wary of any advisor that recommends this structure.
What is capital gains tax?
Calculating your capital gain or loss
What is the cost base?
Compulsory acquisition of an asset
ATO - Capital gains tax essentials
ATO (Individuals) Guide to capital gains tax 2006-07
ATO Capital gains concessions for small business