Question

How much tax would be payable by the Lee Superannuation Fund with all members in accumulation mode which provided the following details for the 2017/18 financial year:

Sale of investments for a gross capital gain of $20,000 that were held for 9 months.

Sale of investments for a gross capital gain of $30,000 that were held for 3 years.

Other assessable income of $100,000.

Allowable deductions of $20,000.

CGT discount for superannuation is 33 1/3 %

Income tax rate for superannuation is 15%

Answer 1

Answer:

Short term capital gains are considered to be as ordinary income (no CGT discount applicable)

• Short term capital gain = $20,000
• Other assessable income = $ 100,000
• Allowable deductions = $20,000
• Taxable Income = ST CG + Other Income - Deductions i.e. $100,000

• Long term capital gain = $30,000
• CGT discount for superannuation = 33 1/3 %
• Taxable Gains = LT CG - CGT discount = $20,000

Income Tax = Total income ($100,000 + $20,000) * Income tax rate for superannuation @15%

= $18,000