I reference your recent article Still a super slug – if ever legislated. Can you please explain further your comment that if you purchased assets prior to 1 July 2024 and if they are supporting a pension, they will remain free of capital gains tax. I thought the $100,000 threshold referred to all gains related to the sale of assets purchased after 5 April 2013, if when added to income breached the $100,000 threshold. Thanks
A: I think you may have misinterpreted what I wrote. To quote directly:
“Fortunately, this change is only being introduced prospectively and won’t apply to any existing asset for another 11 years – that is, until 1 July 2024. So, if you purchased the assets before 5 April, they can be sold at any time prior to 1 July 2024 and if they are supporting a pension, they will remain free of any capital gains tax.”
To confirm, an asset purchased prior to the date of announcement (5 April 2013) will remain capital gains tax free until 1 July 2024 under the 10 year “grandfathering” provision. If disposed of after this date, then potentially any capital gain from 1/7/2024 to the date of disposal will be taxable.
An asset purchased on or after 5 April 2013 will potentially be liable for capital gains tax on disposal.