What are capital gains…?

Your tax return will require including your investment income. This ranges from rent, to dividends, and many more.

Capital gains/losses are one of these income sources. When you sell an investment, it must be for more than its original cost to be a capital gain. If you sell it for less than its cost to acquire, then it’s a capital loss.

Capital Gains

Capital gains are taxed at your marginal rate. If you’ve held the investment for more than 12 months, you’re taxed on half of the capital gains. For further information click here.

Capital Losses

Capital losses can be used to reduce capital gains made in the same year, or to offset future gains.

 

All information was sourced from moneysmart.gov.au