Calculation of Australian Capital Gains Tax

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OUTSOURCE Your Accounting Work

• A brief on Capital Gains Tax in
• Australia

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A brief overview on Capital Gains Tax for
Australian Tax Payers
This Presentation is aimed at explaining the
taxability of Capital Gains Tax in Australia
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Taxability of Capital Gains

• Addition to taxable income
• Capital Gains are added to the taxable income of
  the Assessee
• Assets Covered
• All the assets acquired after 20th September 1985
  are taxable to capital gains tax.
• However personal assets are exempt from capital
  gains. For eg, capital gains tax is not payable
  on personal house, furniture, car for personal
  use etc.
• Business assets on which depreciation has been
  claimed are not liable for capital gains tax.
• Assessee can generally discount a capital gain by
  50 if they hold asset for more than a year.

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Calculation of Capital Gains Loss

• If during any year Assessee has capital loss, he
  can claim it as deduction from profits of that
  particular year.
• However capital losses cannot be offsetted
  against the business profits.
• Carry Forward of Losses
• Capital Losses can be carried forward to claim
  offset in succeeding year against capital gains
  of coming years.

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Calculation of Capital Gains

• Deduction of Expenses for selling of assets
• Expenses incurred for sale of assets are deducted
  from the sales proceeds
• Expenses for Improvement of Assets
• Expenses incurred for improvement of assets are
  added to the cost of assets.
• Asset used partially for business purpose
• In case asset is partially used for personal
  needs the calculation of depreciation has to be
  done in specific manner as per uniform capital
  allowance (UCA) system

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Thank you
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Note

• This presentation is aimed at explaining the
  basic aspects of legislation.
• This content is for general information purposes
  only, and should not be used as a substitute for
  consultation with professional advisors.