Investment clubs and tax

The tax law does not contain specific rules dealing with investment clubs. As of October 2005, the Australian Taxation Office (ATO) has not provided any guidelines on how it applies the tax law to investment clubs. Check the ATO website for the latest information.

The application of the tax law to investment clubs and its members will depend on the individual circumstances of each club and each member in that club. ASX cannot advise on individual circumstances. If you have any questions related to your personal tax liability, please consult a qualified tax adviser.

Accounting firm Ernst & Young have prepared a taxation document for you. It discusses in general terms the main tax issues that are relevant to an investment club where members are individual residents of Australia for tax purposes. 

The topics discussed include:

  • How is an investment club treated for tax purposes?
  • What does it mean to be treated as a partnership?
  • Treatment of income from investments made by investment clubs
  • Tax treatment of the disposal of stock by investment clubs?
  • Stock held on Capital Account
  • What happens when there is a change in the membership of an investment club holding stock on capital account?
  • Is the investment club membership itself a CGT asset?
  • Goods and Services Tax (GST)
  • Record keeping
  • Compliance obligations
  • The member's responsibility
  • Tax questions and their answer

Download Taxation issues for investment clubs (PDF 79.0KB)

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