Correct. You pay tax on the gain (loss) of shares sold during the year. Any which were held for longer than 12 months get a 50% discount on the CGT.
You really need to talk to your accountant before doing anything here. If any of your children are under 18 then the normal tax rates don't apply. Their tax free threshhold is $416 and then 66$ for $417 - $1307 and 47% over $1308. This applies to interest on bank accounts, share dividends, trust distributions etc. The only exceptions are for income from actual work performed and distributions from a testamentary trust.
I assume, TechSF, that you wish to remain alive so you can't take advantage of a testamentary trust in this case.
Happy planning and be grateful that you actually have profits. The problem is obviously to pay the correct amount of tax and no more on those profits as one Kerry Packer so bluntly put it to a parliamentary enquiry that he fronted many years ago. Where he is quoated saying: "Of course I am minimising my tax. And if anybody in this country doesn't minimise their tax, they want their heads read, because as a government, I can tell you you're not spending it that well that we should be donating extra!" He also said at the time he pays exactly how much the law says he must pay and not a cent more.
https://en.wikipedia.org/wiki/Kerry_Packer
regards
dkit
