Are shares really "uninvestable" under the proposed CGT change? Running the numbers

"Shares are uninvestable now, the ATO takes 47%." Let's run the numbers.

47% is the top marginal rate, Medicare levy included. To get there you need the worst case: a near-zero cost base and a top-bracket income. For a typical investor it looks different. Say your shares rise 5% in a year while inflation runs 2.5%. Indexation lifts your cost base, so you are taxed only on the real gain, about half your nominal gain, the same share the old 50% discount gave you. Roughly unchanged.

The Financial Review and the Guardian both ran the numbers and landed in the same place. Far from uninvestable. The scary figure is a real edge case, not the typical one.

This is a proposed bill for July 2027.

General information only, not financial advice. Check your own mix with a registered tax agent.

#CGT #ASX #investing #AusFinance #tax

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