What % rate is capital gains tax in australia?
There is no such thing as a tax called “capital gains tax”. It just means your capital gains are taxable – i.e., your net capital gain (your profit from selling an asset, less the 50% discount if applicable) is included in your assessable income. You are taxable on your whole taxable income. Assessable income less deductions = taxable income. Tax is levied at the standard rates on taxable income to give you your gross tax payable. Gross tax payable is reduced by tax credits (e.g. PAYG witholding from wages, etc) and tax offsets (e.g. the medical expenses tax offset, foreign tax credits, dependent tax offset… etc rebates etc). Gross tax payable less tax credits and/or tax offsets = tax payable or tax refund. It’s basically a reconciliation. By having a capital gain included in your assessable/taxable income, you’ll end up in a higher tax bracket with all your income subject to a higher tax rate. So your tax credits won’t be enough to “cover” it, and the result will be a tax payable to
