capital growth concept

Hello there!

So, did some more study .. thank you all who replied my earlier questions.

Here is one more doubt.

1. Have PPOR, tanken one IP, now ready with LOC for further investment.
2. Going good with regular income from work, thanks to oil and gas
3. Personally believe that a real estate must appreciate over long term as the demand will always grow due to population growth. But not able to fully comprehend the concept of capital growth on shares or funds.
4. I am already in high tax pocket and do not have cash flow (shortage) problem (rather pushing extra cash into super via salary sacrifice .. I am going to be 50 soon and thus this is the easiest way to handle extra cash).
5. So if I get regular income then it will be taxable. (well, IP loan, LOC loan and Margin will give me some negative gearing)
6. So how to target minimum regular income with maximum capital growth in funds and shares?
7. And broadly, how the capital growth is taxed? Will it be every year or when realised in future?
8. I know, I am trying to take a short cut. But this forum is really giving cream of knowledge and great pointers to the wealth of informatioin.

Thanks and Regards

 

Hi Punter
Any capital growth that you make on your shares, like property, is not going to be taxed until you realise the gain; in other words, when you sell or dispose of it. With property, as long as you hold it longer than 12 mths, you will only be taxed on 50% of the total capital gain.
Others will be able to comment on shares and funds here.

 

Punter, the same 50% CGT discount is applied to shares and units in MF if you hold them for more than 12 months. If your tax liability is a concern, then investing in a growth fund MAY be more beneficial than an icome oriented fund.

Cheers, Chris

nb. THIS IS NOT ADVICE, please do your own DD