🇦🇺Australia

Capital Gains Tax Hits from Rebalancing

3 verified sources

Definition

Rebalancing without prioritizing low-tax environments like superannuation triggers CGT on gains, eroding portfolio value.

Key Findings

  • Financial Impact: 15-47% marginal CGT rate on realized gains (AUD 1,000-10,000 per rebalance event)
  • Frequency: Each sell of overweight assets outside super
  • Root Cause: Lack of visibility into tax-optimized rebalancing across accounts

Why This Matters

The Pitch: Investment advisers in Australia 🇦🇺 lose 15-30% effective returns to CGT on rebalances. Automated superannuation-linked rebalancing avoids tax drag.

Affected Stakeholders

Tax Advisers, Portfolio Managers, Clients

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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