Taxation

Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is a tax on the profit you make from the sale of your assets, such as shares. Assets which fall under the CGT provisions include shares, certain types of derivatives products, investment properties, and selected personal items (excluding cars and principal place of residence).

The realised gain can be calculated using the difference between the amount received on disposal of the shares and the cost base of the shares. The cost base of your shares in these circumstances is the sum of the amount paid to acquire the shares, including any brokerage fees.

If the disposal (sale) amount is less than the cost base, then a capital loss is realised. A realised capital loss can be used to reduce taxable capital gains (but not other income). Income derived from the sale of shares are included in a taxpayer’s income as capital gains.

The following material is a general guide for people who require information on the Capital Gains Tax system as it applies to Options and Warrants.  It is relevant to the taxation of assets held directly by individuals, and does not address assets held in companies, trusts or other entities. It is not designed to address all capital gains assets. It does not purport to be advice, or recommend decisions but provide general information only. To obtain further information or assistance, you should seek professional advice from your accountant or financial planner tailored to your specific investments. For more information please refer to the Australian Taxation Office (ATO) website.

Options taxation

Taxation treatment of options

Warrants taxation

Taxation treatment of warrants