Luke on 2CC – Capital Gains Tax and June 30

What is Capital Gains Tax and can you manage it?
Financial Adviser, Luke Smith, on 2CC Canberra

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 11 June 2021. This week’s topic: Capital Gains Tax and June 30.

Luke starts the show with a timely reminder about making contributions to super before June 30. As Luke says, if you make your contributions early, you’ll never be late. This week though the topic is Capital Gains Tax (CGT). A Capital Gain occurs when you sell a capital asset like real estate or an investment. It’s the difference between what you paid for the asset and what you sold it for. In Australia, if you sell the asset for more than you paid for it, you will need to pay Capital Gains Tax unless it is an exempt asset, like your main residence.

Key highlights include:

  • The end of financial year is fast approaching – about 3 weeks from the time of recording this podcast.
  • What should you be thinking about Capital Gains right now? Should you sell assets before June 30?
  • How is Capital Gains Tax calculated?
  • How does the discount work?
  • Think about the entity in which you sell the asset too
  • Can you use loses to offset gains in other assets?
  • Is there something right now you can sell right now?
  • Don’t leave it too late to think about your options and seek advice
  • Think about the CGT as an event that’s triggered when you sell an asset. This means you can lock a loss in and buy back the asset.
  • Can you use the carry forward concessional rules to add money into super and claim a tax deduction?
  • If you’re close to pension age, perhaps there is an opportunity to wait and not sell the asset until you’re in pension phase of super. Again seek advice for your personal situation. 
  • What happens if you have a house you move out and rent it for a period but then move back in? Do you have to pay CGT?
  • Luke shares his tips around how people can manage their Capital Gains Tax obligations.
  • Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.

Listen to the Podcast right now


Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’

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Do you need advice around CGT?

CGT
Seek advice around Investments and Capital Gains Tax

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. The legislation and strategy can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and options. Luke can also refer you to an accountant at no cost. 

Make an appointment to confidentially discuss super, investment, insurance or retirement. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.

Luke will return to talk about financial planning on 2CC next Friday fortnight.  You can also catch up with The Strategy Stacker – Luke Talks Money podcast.  We look forward to your company again.

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