Generally accurate, but some points of clarification required:
- The top marginal personal tax rate is currently 47%, not 49% (i.e. 45% + 2% medicare levy).
- Most ASX stock punters, regardless of what they say or think they are doing (eg: "I am investing", or "I am trading"), are actually classified by the ATO as "investors", as opposed to "traders". There are specific rules associated with whether the ATO will accept and treat someone being classified as a "trader". Making a whole bunch of trades during any given financial year is only part of the required criteria. Having a "trader" status means that your profits/losses are treated as operating income/loss and are not treated as capital gains/losses (as per CGT provisions). This might seem like semantics, but there are circumstances in which how someone is classified by the ATO can have a material impact on the tax payer. For most people in most situations, being an "investor" is fine. Some people are just very, very active investors.
The original poster seemed to be getting confused between how the tax payable is calculated and what the applicable rate of tax is. It sounds like his accountant was referring to the 50% capital gains discount for an asset held for 12 months or longer (i.e. 50% of the gain is tax free), rather than anything else, which you have amply explained.
