If you’ve sold, gifted, transferred or participated in a share buy-back during the 2025–26 financial year, it’s important to let your accountant know when preparing your tax return.
The Australian Taxation Office (ATO) is contacting taxpayers and tax agents where its records indicate that shares may have been disposed of on or after 1 July 2025. These transactions can have important tax consequences and should not be overlooked.
What counts as a share disposal?
Many people assume only selling shares is relevant for tax purposes. However, a share disposal can include:
- Selling shares through a broker
- Gifting shares to another person
- Company share buy-backs
- Off-market transfers
- Other transactions where ownership of shares changes
Capital Gains Tax (CGT)
For most investors, shares are considered a capital asset. This means disposing of shares may result in a:
- Capital gain if you sell for more than your cost base, or
- Capital loss if you sell for less than your cost base.
Capital losses should still be reported, even if they cannot be used immediately. They can often be carried forward and used to offset future capital gains.
If you’ve held your shares for more than 12 months, you may also be eligible for the 50% CGT discount, depending on your circumstances.
What if you’re a share trader?
If you operate a business of share trading, different tax rules apply. Rather than being subject to Capital Gains Tax, your:
- Profits are generally treated as ordinary business income.
- Losses may be deductible in the year they occur.
- Shares are treated as trading stock rather than capital assets.
If you’re unsure whether you’re considered an investor or a share trader, we can help determine the correct treatment.
Keep Good Records
Accurate records are essential to correctly calculate any capital gain or loss. We recommend keeping:
- Share purchase and sale confirmations
- Broker statements
- Dividend statements
- Details of brokerage fees and other costs
- Records of any corporate actions (such as mergers, share splits or buy-backs)
These records should generally be retained for at least five years after lodging the relevant tax return.
Don’t Rely Solely on ATO Pre-fill Information
While the ATO receives information from many share registries and brokers, pre-fill data isn’t always complete or immediately available.
That’s why it’s important to tell us about all share transactions you’ve made during the year, even if you don’t believe the ATO already has the information.
We’re Here to Help
If you’ve disposed of shares during the financial year—or you’re unsure whether a transaction has tax consequences—our team can help ensure it’s reported correctly and that you’re claiming all available concessions.
Contact Roy A McDonald Pty Ltd before lodging your tax return.
We’ll help you understand your Capital Gains Tax obligations and ensure your return is accurate and compliant.
Source: ato.gov.au
