Capital Gains Tax (CGT) may apply when certain assets are sold or otherwise disposed of, subject to the relevant tax rules. Understanding how a capital gain is calculated and what tax treatment may apply can be an important consideration when reviewing an investment portfolio.

Factors such as the timing of a disposal, how long an asset has been held and the availability of applicable exemptions or concessions may affect the tax outcome. These rules depend on the asset and the investor’s circumstances, so professional tax advice may be appropriate before making decisions involving the sale or transfer of investments.

Investment decisions can involve both potential returns and tax implications. Considering these factors together may help investors better understand the overall impact of different investment choices.

Relevant considerations can include the structure of an investment, the tax treatment of income and gains, applicable concessions and the timing of an eventual sale. Any investment strategy should be assessed against the investor’s objectives, financial position, timeframe and tolerance for risk. Tax efficiency alone should not determine whether an investment is suitable.

River Group Fund Services Pty Ltd encourages investors to understand the features, costs, risks and potential tax implications of investment options before making decisions. Individual tax advice should be obtained from an appropriately qualified professional where necessary.