Earning profit from the selling of any kind of capital asset is taxable in Australia except for the cases when capital gains exemptions are already specified. In Australia the selling of family home and the transfer of property to the beneficiaries after the death of the property owner are exempt from capital gains taxation. A discount of 50% is given to the gains earning from an asset, which was held for more than 1 year to an individual and 33?% to the superannuation funds.
According to the tax law in Australia, the non-residents of Australia have to pay the capital gains tax on the entire assets and profits derived from the investments made in Australia. Examples of such investment include investment made or share holdings in the private companies in Australia. But under the new legislation very few categories of asset and property would remain under the capital gain taxation liability for the non-residents.
The exemptions from capital gains tax Australia are mentioned specifically. The exemption law is applied to all kinds of assets from tangible to intangible and from owned outright to partial interest assets. Here is a list of some of the assets that enjoy capital gains tax exemption in Australia:
- Any asset that is purchased before 20th September 1985 till its original owner is surviving.
- The personal use assets purchased for up to $10,000 including electrical equipments, furniture and boat.
- The main residence of the taxpayer whose adjacent 2 hectares are in domestic use.
- Cars and small motor vehicles.
- Compensation received for the personal or occupational injury.
- Sold life insurance policies.
- Shares bought in the pooled development funds.
- Notes and bonds sold at discount.
- Payments received from government-designed schemes like the industry restructuring schemes.
- Collectables purchased for up to $500
- Gambling wins and losses.
- Trading of stocks.
