Hi,
I am an individual (in Australia) and have bought (via ASX) some exchange traded Treasury Bonds (issued by the Aust Govt) as an investment. I know the interest is taxed as income but how are the Treasury Bonds taxed if I was to sell them before the bonds reach maturity?
Are the Treasury Bonds CGT assets? So on disposal they result in capital gains/losses with the benefits of CGT discount if I've held the bonds for more than 12 months?
Or are the gains/losses on sale of Treasury Bonds taxed as income (like the interest that's paid annually on the bonds) at my marginal tax rate?
Or are the gains/losses on sale taxed in some other way?
I have found commentary on the ATO website on sale of "company bonds" but what about Treasury Bonds issued by the Australian Government themselves? ATO link here
Also, is the tax treatment on disposal the same if I was to invest in other government issued bonds - e.g. US Treasuries or UK Gilts?
Thank you for helping me with this!
13,172 views
4 replies