As we approach year end, can you explain the best way to minimise Capital Gains Tax? Specifically, to avoid paying CGT should I be looking to book sufficient losses to cover gross capital gains I’ve made (before applying the 1/3 discount for shares sold that I held more than 12 months), or do I only need to book losses to cover 2/3 of the gross capital gains in this case to make use of the 1/3 tax concession?
A: In a super fund, CGT is only payable if the assets are held in the accumulation phase. Tax rate is 15%, reduced to 10% by the one third discount applicable to assets owned for more than 12 months.
In regards to your question, to offset gains, you need to have sufficient losses on a gross basis.
