Tax payers can reduce their tax liability this end of financial year by deferring the realisation of a capital gain until after June 30. 

If you are thinking about selling an asset this year for a profit, you may want to consider deferring until the 2012-2013 financial year. This could reduce the amount of Capital Gains Tax (CGT) you are liable for and in turn reduce the tax you have to pay.

Deferring the sale of an asset can delay your CGT liability for up to a year, and in some cases longer. If you expect to earn a lower taxable income in the following tax year, the tax you have to pay on the realised capital gains in that year may decrease significantly.

For example, by deferring the sale of an asset until the following year when you expect to earn less income, your tax rate will change to a lower bracket, meaning you save considerably on tax.

Some other strategies to minimise CGT include:

• Utilise the CGT small business and retirement concessions
• Match gains and losses where possible to avoid carrying forward a capital loss
• Defer a disposal to a subsequent income year
• Defer a disposal to ensure the asset has been held for at least 12 months to potentially benefit from the 50 per cent discount

If you feel that CGT may affect you this year, please contact our office.