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Australian Taxation Capital Gains Tax Q1: On 1 January 1991, Russell Shrewd purchased 200 shares in ABC Ltd for $1,400 and 300 shares in XYZ

Australian Taxation

Capital Gains Tax Q1:

On 1 January 1991, Russell Shrewd purchased 200 shares in ABC Ltd for $1,400 and 300 shares in XYZ Ltd for $2,600, intending to hold them as an investment. On 15 August 2015, he sold the shares in ABC Ltd for $700. As at 30 June 2017, the shares in XYZ Ltd had risen in value to $3,000. Russells only other income in the year ended 30 June 2017 was a salary of $22,000. On 20 December 2017, Russell sold shares in XYZ Ltd for $3,600. His only other income in the year ended 30 June 2018 was a salary of $23,000.

What is Russells taxable income for each of the years ended 30 June 2017 and 30 June 2018? (Note there was no change in marginal tax rates from 2017 to 2018).

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