$1m.plus incomes and cgt
ABC published the analysis below on how taxpayers on different incomes derive their income.
CGT is evidently an increasing proportion for those earning over $250k and sitting at 26% for people earning over $1 million
Question - assuming some people have incomes over $1 million in some years but not other years (e.g. asset sales), is there any way that might be accounted for in the data? If so, does it actually matter?
The analysis reads like everyone's income year on year is relatively stable. My assumption would be that it is more stable at the lower income tiers and more lumpy at the top tiers. Some must pull in $1m yoy but others might be there once every 10-20 year or once in their life. Maybe they are cruising at $90k- $120k until they sell an asset? So to say CGT discounts mainly go to top income earners when a lot of the income in that year is from selling the asset that accrues CGT might be a bit of a misnomer.