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#31 | |||
Banned
Join Date: Jul 2007
Location: new south wales
Posts: 1,153
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Quote:
some examples for you : If you bought your woolworths shares for $20 dollars and held them for a year or more and sold them at $30 dollars , this would be the outcome . say you bought $50,000 dollars worth , you sell them 13 months later for$30 ,you know have $75,000 . so $25,000 is considered capiatal gain , if you have held it for over a year the amount you pay capital gains tax on is reduced by half ,so you only pay tax on $12,500 while still holding your $62,500 . if you were to sell out in six months time at $30 you will pay capital gains tax on the whole $25,000 profit. So if you earn say $75,000 in your job a year , and sell your shares after one year you will pay tax on $87,500 for that financial year . If you held them for only six months but sold them at $30 your taxable income would be $100,000 for the financial year. Now that is for a capital gain , I will briefly explain capital loses while I am here. If I bought the shares for $20 like before and they went to $10 dollars and I sold that would be a capital loss . my initail $50,000 investment would now be worth $25,000 ,so I have had a capital loss of $25,000 . Now heres the thing , you cannot offset a capital loss against your wages , meaning you just pay your normal amount of tax on the wage for your job . You can only offset a capital loss with a capital gain , If I had some other shares shares that made a profit and had a capital gain of $25,000 I could offset this against my capital loss and effectively pay no tax on the shares that profited. Or if you owned an investmant property and sold it for a profit you can offset your capital gain on the property against your capiatl loss from the shares and reduce the amount of tax you pay on the investment. If you have shares and sell them at a loss you can offset this with a any gain you make even years down the track . so I might make a loss one year , but if I sell an investment property or shares seven years later and make a capital gains pofit I can offset this from my loss seven years ago , I dont know exactly what the time frame to use this up is , it may be eternally , but I am not sure about that , you will have too look into that yourself. |
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#32 | ||
\/\/\/\/\/\/\/\/
Join Date: Feb 2006
Posts: 5,694
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My advice would be don't both listening to the (generally conflicting) advice on a car enthusiast forum and find a (good) financial planner like you mentioned in your OP.
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#33 | |||
Banned
Join Date: Apr 2009
Posts: 598
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Financial planners are the scourge of the Australian investment community. They prey on people like retirees, the aged, the too trusting ..... |
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#34 | |||
Lyminge, Shepway, Kent
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Location: Geelong - Go Cats
Posts: 3,197
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#35 | |||
Regular Member
Join Date: Jun 2010
Location: Sunshine Coast
Posts: 236
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#36 | |||
FF.Com.Au Hardcore
Join Date: Apr 2007
Location: Miranda, NSW
Posts: 6,771
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Quote:
No, but I believe banks will credit interest at least annually irrespective of the term of the deposit, so in any given year you will have an amount of interest to include as assesable income. There is no capital gain associated with bank deposits. Someone mentioned sticking the deposit in the name of a child < 18 years yo. Minors can earn up to $3,334 without having to lodge a tax return, so this is a useful way to do it.
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2005 BA MK2 FPV GT - 6 SPEED MANUAL , SILHOUETTE, SWISSVAX, SUNROOF, BILSTEIN AND LOVELLS, FACTORY GENUINE 19'S, X-FORCE STAINLESS QUAD CATBACK, ADVANCE HEADERS, 200 CPSI CATS, BLUEPOWER CAI, HERROD BREATHER KIT, 4:11 DIFF RATIO, MAL WOOD OPT 3+ CLUTCH, BILLET SHIFTER, MELLINGS 10227, NOW WITH REVERSE CAMERA/SENSORS, ALPINE SPEAKERS & SUB - CUSTOM TUNED TO 275 RWKW NOW WITH A NEW ADDITION - 2017 MUSTANG V8 GT FASTBACK - , 6 SPEED AUTO IN PLATINUM WHITE, |
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#37 | |||
FF.Com.Au Hardcore
Join Date: Apr 2007
Location: Miranda, NSW
Posts: 6,771
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Quote:
Totally agree with that...Most advice is not given at arms length either re: those who are employed by banks
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2005 BA MK2 FPV GT - 6 SPEED MANUAL , SILHOUETTE, SWISSVAX, SUNROOF, BILSTEIN AND LOVELLS, FACTORY GENUINE 19'S, X-FORCE STAINLESS QUAD CATBACK, ADVANCE HEADERS, 200 CPSI CATS, BLUEPOWER CAI, HERROD BREATHER KIT, 4:11 DIFF RATIO, MAL WOOD OPT 3+ CLUTCH, BILLET SHIFTER, MELLINGS 10227, NOW WITH REVERSE CAMERA/SENSORS, ALPINE SPEAKERS & SUB - CUSTOM TUNED TO 275 RWKW NOW WITH A NEW ADDITION - 2017 MUSTANG V8 GT FASTBACK - , 6 SPEED AUTO IN PLATINUM WHITE, Last edited by GT0132; 22-09-2011 at 09:39 AM. |
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#38 | |||
Regular Member
Join Date: Mar 2011
Location: Burpengary, Brisbane, QLD
Posts: 54
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Quote:
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FG XR50 Turbo 6 Speed Manual Black Aluminium pipework Apexi Race pod, not a cheap *** one! Autotech Intercooler 460 x 430 x 55 |
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#39 | |||
Banned
Join Date: Mar 2011
Posts: 455
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#40 | |||
Banned
Join Date: Jul 2007
Location: new south wales
Posts: 1,153
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Quote:
Last edited by dave289; 22-09-2011 at 10:27 AM. |
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#41 | |||
Regular Member
Join Date: Oct 2005
Location: Sydney
Posts: 460
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Quote:
However back to trying to avoid paying tax, I think you will pay it regardless. You have made money and being an investment property have benefited from receiving tax deductions from your interest and other costs associated with the property. If you have kept the property for longer than 12 months then you get a 50% discount on your CGT and the rest is charged at your marginal tax rate. For putting the money away at the moment, I would look in to term deposits and also other high interest bank accounts such as, UBank, Rabo Bank....etc The rates these banks have are quite good and very very competitive with term deposits and the benefit is that your money is not tied up for a fixed period. Look into all of your options |
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#42 | |||
Banned
Join Date: Jul 2007
Location: new south wales
Posts: 1,153
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Quote:
Last edited by dave289; 22-09-2011 at 10:34 AM. |
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#43 | |||
FF.Com.Au Hardcore
Join Date: Apr 2007
Location: Miranda, NSW
Posts: 6,771
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Quote:
If the property sold was a place of residence then CGT is a non issue . However if it was an investment held over 12 months then 50% of teh sale price over cost base will be assessable as a capital gain. The only way this can be reduced is to utilise any prior capital losses to offset it against. There is no rollover relief on CGT if for example the proceeds are used to buy another investment property unlike when you sell and buy another business
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2005 BA MK2 FPV GT - 6 SPEED MANUAL , SILHOUETTE, SWISSVAX, SUNROOF, BILSTEIN AND LOVELLS, FACTORY GENUINE 19'S, X-FORCE STAINLESS QUAD CATBACK, ADVANCE HEADERS, 200 CPSI CATS, BLUEPOWER CAI, HERROD BREATHER KIT, 4:11 DIFF RATIO, MAL WOOD OPT 3+ CLUTCH, BILLET SHIFTER, MELLINGS 10227, NOW WITH REVERSE CAMERA/SENSORS, ALPINE SPEAKERS & SUB - CUSTOM TUNED TO 275 RWKW NOW WITH A NEW ADDITION - 2017 MUSTANG V8 GT FASTBACK - , 6 SPEED AUTO IN PLATINUM WHITE, |
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#44 | |||
FF.Com.Au Hardcore
Join Date: Apr 2007
Location: Miranda, NSW
Posts: 6,771
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Quote:
Gold is not exempt from CGT . Unless you are in the business of gold trading in which case gold held is deemed as trading stock, then any profit made is assessable as ordinary income, not as a capital gain.
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2005 BA MK2 FPV GT - 6 SPEED MANUAL , SILHOUETTE, SWISSVAX, SUNROOF, BILSTEIN AND LOVELLS, FACTORY GENUINE 19'S, X-FORCE STAINLESS QUAD CATBACK, ADVANCE HEADERS, 200 CPSI CATS, BLUEPOWER CAI, HERROD BREATHER KIT, 4:11 DIFF RATIO, MAL WOOD OPT 3+ CLUTCH, BILLET SHIFTER, MELLINGS 10227, NOW WITH REVERSE CAMERA/SENSORS, ALPINE SPEAKERS & SUB - CUSTOM TUNED TO 275 RWKW NOW WITH A NEW ADDITION - 2017 MUSTANG V8 GT FASTBACK - , 6 SPEED AUTO IN PLATINUM WHITE, |
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#45 | |||
FF.Com.Au Hardcore
Join Date: Jun 2010
Posts: 1,460
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#46 | ||
FF.Com.Au Hardcore
Join Date: Dec 2004
Posts: 12,077
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The last warning, keep it civil and on topic or it will go along with those who caused it......
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#47 | ||
Flairs - Truckers Delight
Join Date: Aug 2006
Location: Brisbane Northside Likes: Opposite Lock
Posts: 5,731
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xr6wpn, i hope you see this through the 'noise' in this thread, but to answer your opening post:
It's all about accessability and risk. Seriously, if you're wanting a risk-free avenue where you will have your money grow and be available at any time being worth the same amount as it started as if not more, then the bank is the best place. The only thing wrong with the bank is that you have to pay tax on the investment income, as you know. Every other opportunity is not risk-free. Yes you may make better gains at less expense, but you are giving away accessability, and your money is not guaranteed to be worth the same amount as it was yesterday. And you've got to look at what those things affect - the emotional toll. Having $120k being affected by things outside your control is not an easy thing to do. As hurtful as it seems, paying the tax to the government most likely is the least painful option.
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Current: Silhouette Black 2007 SY Ford Territory TX RWD 7-seater "Black Banger"
2006-2016: Regency Red 2000 AUII Ford Falcon Forte Automatic Sedan Tickford LPG "Millennium Falcon" |
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#48 | ||
XY Driv3r
Join Date: Jul 2005
Location: Melbourne
Posts: 3,004
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Any profit making undertaking or plan is subject to CGT, unless of course it is in the course of business (as per GT's post)... There are some exemptions but they are for cars, awards, personal use assets etc.
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#49 | |||
Banned
Join Date: Jul 2007
Location: new south wales
Posts: 1,153
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#50 | ||
THE BOSS
Join Date: May 2005
Location: Horsham, Vic
Posts: 418
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Hey all the money was made off a house I had built and lived in for 6 years, im 25yo so super really isnt an option.
Thanks to all for their input, I was hoping to find an easy option to avoid some tax but I might just leave it where it is, at least I know it is safe. Cheers, Dan |
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#51 | |||
Banned
Join Date: Apr 2009
Posts: 598
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Quote:
![]() Except with the "investment" option I propose you stand to double your money in an afternoon, (whereas we were bled slowly while hanging on hoping for a recovery....) So...if you are only 25 y.o and don't mind doubling your money with absolutely no tax whatsoever when your "investment" matures... It's called betting on red or black....and far better than super has been recently... ![]() With 120k to play with if you lose the lot you will still have lost far less than my super did in the GFC... |
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#52 | ||
Long live the Falcon GT
Join Date: Feb 2008
Location: Victoria
Posts: 1,630
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Now - before ALL of you dismiss what I'm about to say... lets remember that this advice is coming from a Car Enthusiast - to Another Car Enthusiast (OP).
If it was my money, I'd be looking for an XW GT HO (PH1 or PH2) and the best/most original one I could find for my $120k... (Can already see everyone walking towards the door - but hear me out...) If you put your $120k into a 6% interest earning account - sure it's safe as houses - and will earn you roughly $40k over 5 years or $100k over 10 years... You will have to pay tax on the interest of course - as you know... But either way you are still in front, and if anything happened - you could access your money (emergency reasons - or whatever). This is a SAFE option and means you really can't lose overall - even when you pay tax. OR - There is The GT HO option. With $120k today - you could buy a VERY good PH1 or PH2 GT HO. What will the car be worth in 5 years? or 10 years? Most likely more than you will get on your interest saver account over the same period. Based on What?? 10 years ago - you could buy a XW GT HO for about $38k-$40k... Even in todays slow classic car market - it would be worth roughly TRIPLE what you paid for it 10 years ago.... (and in the peak it was worth approx $250k - rougly 6 times the purchase price)... Take into account the cost of insuring, storing, and maintaining the car - it will be similar to the amount you would have paid in tax on the interest earned from your 6% savings account. If anything was to happen to the car (stolen, torched, crashed, etc etc) you would have an insurance policy on the car at an inflated price - (get the agreed price updated/valued every time you renew the policy) So when you buy it at $120k - its insured at $150k... when it's worth $150k - its insured at $200k... and no matter what happens to the car - you're covered. In 10 years - what do you think the car will be worth (assuming you are doing less than 1000 miles a year and you keep it in top shape) ?? If your answer to this question is more than $220,000 - then you would have made more than your 6% savings account. 10 years ago - nobody would have believed you if you told them that a PH1 or PH2 was gonna be worth 'hundreds of thousands'... and it happened... Just like real estate, classic and collectable cars have increased (overall) in value over the years.... and will continue to increase overall... So - my prediction... in 10 years... A PH1 or PH2 will be worth north of $300k... it was only 3 years ago that they were nearly worth that anyway... (during a spike/fluctuation that has since corrected itself)... GT HO Falcons are different to most other cars, as they have always - and will continue to appreciate in value... This cannot be denied or argued... So - when you decide to sell your PH1 or PH2 in 10 years... How much TAX do you pay??? Zero.... It's not quite as safe as the interest saver - agreed... But with the greater risk comes the greater reward... Would you have enjoyed your investment? Hell Yes... Thats my opinion - for what it's worth.... (PUN INTENDED)
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#53 | |||
Banned
Join Date: Jan 2009
Posts: 1,621
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Thanks Dave289 for your detailed information, it,s good in know some useful info. I just haven,t had time to research (wade throught screens of tax info.) tax rules. cheers mate.
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#54 | |||
Banned
Join Date: Jul 2007
Location: new south wales
Posts: 1,153
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Quote:
@ loftie , sorry to say mate , but muscle cars will be coming down along with everything else . But I still wont be selling mine cause I could not care less if its worth $1,000,000 or $1 . So here I am selling my house of 17 years , but could never sell my beast , glad to see I have my priorities right . ![]() |
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#55 | ||
BIG MEMBER ;)
Join Date: Sep 2009
Location: Sydney, NSW
Posts: 940
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Just keep it in a savings account earning interest. I love seeing "investors" lose their cash around me recently and my savings untouched in my account.
Investing is bad IMO.
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2010 FG XR6T, EGO, MANUAL, LUXURY PACK.
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#56 | |||
Mot Adv-NSW
Join Date: Jun 2005
Location: Lake Macquarie, NSW
Posts: 2,153
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Quote:
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ORDER FORD AUSTRALIA PART NO: AM6U7J19G329AA. This is a European-UN/AS3790B Spec safety-warning triangle used to give advanced warning to approaching traffic of a vehicle breakdown, or crash scene (to prevent secondary). Stow in the boot area. See your Ford dealer for this $35.95 safety item & when you buy a new Ford, please insist on it! See Page 83, part 4.4.1 http://www.transport.wa.gov.au/media...eSafePart4.pdf |
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#57 | ||
Regular Member
Join Date: Jun 2010
Location: Sunshine Coast
Posts: 236
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Another good reason NOT to put money in Superannuation. Scroll down to "Why are the fees increasing"
The first paragraph especially the $.5mill to the Govt for fraud in another fund. AGEST= Aust Govt Employees Superannuation Trust http://www.agest.com.au/latest-from-...ange/index.cfm |
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#58 | ||
Flairs - Truckers Delight
Join Date: Aug 2006
Location: Brisbane Northside Likes: Opposite Lock
Posts: 5,731
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Superannuation is a good thing, but not the topic of the thread.
It's useless for the OP's purposes as at 25 years old, locking your money in until you're 60 is a bad idea.
__________________
Current: Silhouette Black 2007 SY Ford Territory TX RWD 7-seater "Black Banger"
2006-2016: Regency Red 2000 AUII Ford Falcon Forte Automatic Sedan Tickford LPG "Millennium Falcon" |
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#59 | ||
Regulator
Join Date: Jan 2005
Location: Melbourne
Posts: 4,168
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How is tax calculated here on a term deposit or savings account which pays 6% interest? Same as any other income from employment?
Say you put in 100k with interest earned each year, how much would be taken away by tax?
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Regards Bobby Current Cars: 2000 AU2 Fairmont (2019-current) 2003 BA1 Falcon Divvy Van (2017-current) 2009 VW Mk6 Golf 118TSi (2020-current) Previous Cars: 2003 MCX10R Avalon VXi (2017-2020) 1995 EF1 Falcon GLi (2016-2019) 1997 XH2 Falcon Van OPT20 (2016-2019) 2006 BF Fairlane Ghia (2013-2018) 2001 AU3 Futura (2010-2013) 1996 EL Fairmont (2008-2010) 2004 BA XR6 (2005-2008) 2001 AU2 Forte (2005-2006) 1988 EA Fairmont Ghia (2003-2005) 1984 AR Telstar TX5 Ghia (2001-2005) |
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#60 | |||
Regular Member
Join Date: Jun 2010
Location: Sunshine Coast
Posts: 236
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Quote:
If for example you placed $100,000 in a term deposit today for 12 months with the interest being paid on maturity, then the interest would be paid to you in September next year(2013) so it would be added to your income for 1st July 2012-30 th June 2013 year tax return. However if you only put it in for 6 months then it would be added to this years (2011-2012) return. These are the tax rates so add the interest to your taxable income and do the calculations. http://www.ato.gov.au/individuals/co...tent/12333.htm Then add the 1.5% medicare levy onto your tax payable. |
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