Tax on profits

I have been out of this game for a while and i am now getting back into it.

I realise the CGT is 33% which above all else is excessive but its something we are forced to accept.

Do i calculate the CGT at year end with complete profit from original investment amount or do i calculate CGT from each individual trade.

For example if i invest 10k and after making 10 trades winning and losing and reinvesting profits and finish the year on 25k, do i pay tax of 33% on 15k - 1270 or do i have to pay CGT on each individual trade and not be able to offset losses.

I am wondering because i would like to reinvest the total amounts from share deals and then at the end of the yeat calculate the CGT only on the profits from the combined share deals.

Is this the way it works or does the government tax individual trades to screw you even more and not allow you to offset loses.

Amirani

You can offset capital gains and loses in most instances I believe

topper_harley2

Offset losses v gains and pay CGT on different, after subtracting CGT allowance. Above is assuming these trades are direct shares or US/Canadian ETFs that are subject to CGT. Just in case, UCIT ETFs are not subject to CGT so handling is different.

These are direct shares on the Australian exchange. Thanks for the information, good to know as i use to profits to try to build profits and if it goes down there wouldn't be a shortfall in tax