An ex­pen­sive les­son

Money Magazine Australia - - FROM THE EDITOR -

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

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