An expensive lesson
I recently sold an investment property for $1.1 million after acquiring it for $180,000 and decided to seek advice about investing the proceeds. I knew the capital gains tax was going to be considerable; however, I learnt from the adviser that I was also up for the budget deficit levy, extra Medicare levy and more tax on my salary sacrifice contributions to super (15% to 30%) as the tax office now saw me as a high income earner (albeit for one year).
Had I spoken to an adviser first I would have been told to hold off selling for two years until I was 60, retired and in pension phase on my super. There would be no budget deficit levy, as this would have been phased out, and a reduced CGT liability – thousands of dollars I missed out on.
Act in haste, repent at leisure! Peter, Vic