▲ 29 r/AusFinance
ETF rebalancing & new cgt rules
Not sure if this has been mentioned in all these discussions regarding the new budget rules.
ETF's are trusts and when they rebalancing their holdings, it gets passed to us.
On my last tax return I had a $1249 capital gain on Fang due to rebalancing.
Under old rules with 50% discount at 37% marginal, I pay $239 tax. Under new rules I would pay $330 tax. With 38% more!
Now this was on a very small holding of that ETF so if you have large portfolio, it could make a huge impact on your cashflow.
u/Change-Standard — 8 days ago