The Australian Financial Review --- Page: 31-32 : 30 April 2008 Original article by Bina Brown
LexisNexis Summary
Australian investors can minimize their tax burden as the end of the financial year approaches in mid-2008. One strategy gaining popularity is to offset a capital gain event with a capital loss, which is currently being made easier by the volatility in the stock market. Selling an asset for less than the taxpayer would have received at the beginning of the 12 months is a perfect way to reduce the capital gains tax liability. Experts note that underperforming assets such as certain stocks can be offloaded in favour of higher contributions to superannuation accounts. Issues to be taken into account include executive share schemes, aggressive tax planning, tax file numbers, deferring income, tax offsets, salary sacrificing, transition to retirement, loss harvesting and super co-contributions.
