Share CGT Tax Return Melbourne | Capital Gains Tax for Investors

Capital Gains Tax on Shares — Investors, Not Traders

When you sell shares and have held them as an investor — rather than as a frequent trader — any profit is treated as a Capital Gains Tax (CGT) event, not ordinary income. This distinction matters enormously for your tax outcome.

A One Accountants specialises in preparing share CGT tax returns for Melbourne investors, ensuring you pay the right amount of tax — no more, no less.

Who Needs a Share CGT Tax Return?

You need to declare a CGT event if you sold ASX shares, ETFs, managed funds, cryptocurrency, or foreign-listed securities during the financial year. This applies whether you made a profit or a loss. Capital losses must still be reported to the ATO — they can be carried forward to offset future capital gains.

The 50% CGT Discount

One of the most valuable tax concessions available to Australian investors is the 50% CGT discount. If you held your shares for more than 12 months before selling, only half of your net capital gain is included in your assessable income. This effectively halves the tax you pay on long-term investments.

Trusts and individuals are eligible for the discount. Companies are not. If your shares were held through a company structure, the discount does not apply — all of the gain is assessable.

How We Calculate Your Capital Gain

The capital gain on a share sale is calculated as: Sale Proceeds − Cost Base = Capital Gain (or Loss). The cost base includes not just the purchase price but also brokerage fees, stamp duty, and other acquisition costs. Getting the cost base right is critical — an understated cost base means you pay more tax than you should.

For shares held over many years with dividend reinvestment plans (DRPs), share splits, or bonus issues, calculating an accurate cost base can be complex. We handle this carefully.

Multiple Parcels and the FIFO / Average Cost Methods

If you bought the same stock at different times and different prices, the ATO requires you to identify which parcel you sold. The three permitted identification methods are:

• First In First Out (FIFO) — the earliest-acquired parcel is treated as sold first.
• Last In First Out (LIFO) — the most recently acquired parcel is sold first.
• Minimisation method — select the parcel that produces the best tax outcome (subject to ATO rules).

We assess all available methods and apply the approach that minimises your tax liability within the law.

Capital Losses and Carry-Forward

If you sold shares at a loss, that capital loss can be used to offset capital gains you made in the same year. Unused losses are not wasted — they carry forward indefinitely and can be applied against capital gains in any future year. We track your carry-forward losses year to year to ensure they are never missed.

ETFs, Managed Funds and Foreign Shares

The CGT rules for exchange-traded funds (ETFs) and managed funds differ from direct share investments. Managed fund distributions can include embedded capital gains components that are taxable even if you did not sell any units. Foreign shares also involve additional considerations around currency conversion and foreign income tax offsets. We are experienced with these complexities.

Our Share CGT Tax Return Service

We prepare share CGT tax returns for investors with portfolios of all sizes — from a handful of ASX stocks to extensive multi-asset portfolios. Our service includes:

• Cost base calculations, including historical share splits, DRPs and bonus shares
• CGT discount eligibility assessment
• Capital loss identification and carry-forward matching
• ETF and managed fund distribution analysis
• Complete CGT schedule preparation and ATO lodgement

Fees are fixed and quoted upfront — no surprise billing. Contact us to discuss your share portfolio and we will provide a fee estimate before we begin.