Home' Barossa Herald : October 21st 2009 Contents Wednesday, October 21, 2009 - Page 6 - The Herald, Barossa Valley
A HERALD BUSINESS UPDATE ADVERTISING FEATURE
A HERALD BUSINESS UPDATE ADVERTISING FEATURE
AS INVESTORS - including property
and share investors - employees and
self-employed business operators
approach retirement, they often look
to sell some of their assets to fund
overseas holidays, furniture
upgrades, or to help their children
The Capital Gains Ta x payable on the
sale can amount to tens of thousands
Consider a couple who purchased a
property in the mid 1990s for $100,000
which they now want to sell for
To calculate the Capital Gains Ta x
payable, their half share of the gross
capital gain of $200,000 would be
reduced by 50 per cent as the asset
has been owned for more than twelve
Assuming the investors are
employees or business operators with
$80,000 of other income, both their
respective $50,000 capital gains
would be taxed at 39.5 per cent (the
'marginal tax rate' for income between
$80,000 and $180,000), leaving a total
Capital Gains Ta x bill of $39,500.
This could reduce the tax payable by
If they were employees, they would
almost certainly be ineligible to claim a
tax deduction for any personal
contributions they make into
However, if they defer the making of
their capital gain, retire from the
workforce and receive all their
entitlements before June 30 in a given
year, and their incomes in the following
financial year are limited to the capital
gains of $50,000 from the property
sale, they could be eligible to claim a
tax deduction for their personal
contributions into superannuation in
that particular year.
Assuming their capital gain of
$50,000, and negligible other income;
if they make tax-deductible
contributions of $15,000 each, their
taxable incomes would be $35,000
(that is $50,000 capital gain less the
$15,000 super contribution). Up to
$35,000 taxable income, the marginal
rate of tax is 15 per cent, and a $1350
low-income rebate applies.
Therefore, income tax of $3725 would
be payable on the $35,000 at 2009/10
The $15,000 superannuation
contributions, which are claimed as
tax deductions, are subject to 15 per
cent tax, making additional tax of
$2250 (which is payable by the super
The total tax payable in this well
planned strategy is $5975 each, a total
reduction of $27,550 compared with
the first scenario.
Self-employed investors usually have
even greater flexibility under the
current tax laws than employees to
plan their affairs tax effectively.
Our invitation to you - talk to us.
Call us on 8522 2633, email us at
email@example.com or visit
www.symes.com.au on the internet, if
you'd like to talk to us to identify
changes you can make to improve
your taxation and financial
There will be no charge for this
meeting at 27 Twelfth Street, Gawler
Please note that the above
information is general in nature and
everyone's circumstances are
different. For these reasons, this
article is not intended to constitute
professional advice. We strongly
recommend that you call us to
discuss your specific situation before
acting on this matter.
Help offered to reduce
Capital Gains Ta x
VETERAN broadcaster David
Rea is back on the airwaves.
His return to Triple Bfm last
Saturday marked a step in his
recovery from an horrific car
The popular presenter - who
can be heard on Classic
Saturdays from noon to 2pm -
spent six months in hospital
recovering from injuries
incurred in a car accident
earlier this year.
David lost a leg below the knee
as a result of the crash.
He had been home in Eudunda
for about five weeks but wanted
to get back behind the
microphone as quickly as
possible and Saturday marked
"Getting back into the studio
has been one of my motivators
during my rehab and recovery,"
"I love what I do at the station
and the thought of getting back
on air has helped me get
through the last six months."
Those months involved three
months in the Royal Adelaide
hospital and a further three
months in rehabilitation.
He has learned to walk again
with the help of intensive
The car accident happened in
bad weather, near the Gawler
by-pass on the Freeling - Tarlee
"I can't remember much about
the accident but I was literally
hit by a truck," David said.
He remains grateful to the
medical staff who helped his
"I would like to thank everyone
involved, they are truly
wonderful people," David said.
"I would especially like to
thank my physiotherapist and
the staff at the Hampstead
David has presented on Triple
Bfm (89.1) since the first
broadcast in 1987.
community radio stretches back
to the early 80s with 5UV, now
known as the Adelaide
University Radio Station.
Classic Saturdays is a music
program with a local flavour
playing hits from the 60s to
today as well as songs not
widely heard on the commercial
"The show is an interesting
mix of folk, country and rock. We
play something for everyone."
Music to David's ears
ON SONG: David Rea presenting Classic Saturday on Triple Bfm.
*.76m3 is an approximate measure not a guaranteed measure *.76m3 covers approx 15m2 at a 50mm depth
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now on selected
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Jeffries dura mulch $35/.76m3
Great heavy duty, fully composted mulch.
Cuts evaporation and retards weeds
Jeffries hydrocell soil $88/tonne
Holds water, air and nutrients for plant roots up
to 7 years. Half the water, twice the growth!
Jeffries special soil $49/tonne
A blend of only the best ingredients, including
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Jeffries forever red, black
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A naturally coloured timber mulch
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Looks great and keeps water in.
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Great soil conditioner, retains water, adds
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27 Twelfth St, Gawler.
Phone 8522 2633
Please note that the above information is general in nature and everyone's circumstances are different. For these
reasons, this article is not intended to constitute professional advice. We strongly recommend that you call us to
discuss your specific situation before acting on this matter.
With such a large, experienced team, we
have specialists in every field to help you
Business Advisory Services
Wealth Creation (incl. self managed
Asset Protection & Estate Planning
Talking Your Language
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