Typically these are set as follows:
|
Investor type |
CGT discount rate |
Input tax credit rate |
|
Individual investor |
50% |
0% |
|
SMSF registered for GST |
33.3333% |
75% |
|
SMSF not registered for GST |
33.3333% |
0% |
|
Company registered for GST |
0% |
100% |
|
Non Australian resident |
0% |
100% |
|
Trusts |
50% |
55% |
CGT discount rate is the discount on capital gains where the asset was held for more than 12 months.
Input tax credit rate is used to calculate the default values for Claimable GST. E.g. for a trust this rate is 55%, meaning 55% of the GST expense on a trade can be claimed as an expense against income and the remaining 45% is added to the cost base.
References
- www.ato.gov.au - 'Working out your capital gain'
- www.macquarie.com.au - 'Self Managed Super Funds'
- www.ato.gov.au - 'Capital gains tax (CGT) discount for foreign resident individuals'
- www.gpt.com.au - 'General Summary of Australian Income Tax Implications for Security holders'
Important information
Lincoln Indicators is not licensed to provide tax advice. The above table of tax rates is to be used as a guide only and may change at any time. It is your responsibility at all times to ensure that the correct tax rates are used. In order to determine what the exact rates are that should be applied to your portfolio please seek independent financial tax advice from a licensed professional. Lincoln Indicators takes no responsibility for the tax rate you apply.