July 25, 2010

Do I pay tax on selling shares in Australia?

By Planet Wealth

I’m 18 and have no income, but I have k in shares and want to sell them (I’m going to start day trading with other savings). Do I pay capital gains tax or any other kind of tax when I sell, even if I have no income and under the 00 income threshold? If so, would I pay tax if I re-invested them? Thanks in advance

Topics: Uncategorized | 2 Comments »

2 Responses to “Do I pay tax on selling shares in Australia?”

  1. Luke G Says:
    July 25th, 2010 at 5:37 am

    if you sold the shares the only thing that would count as income is the capital gains (the difference between what they cost you and what you sold them for) if the capital gains are under $6000 you pay no tax, as these shares in particular have a market value of $3000, the capital gains are likely to be far less, perhaps less than $1000 and certainly no where near a figure you would need to pay tax on.

    ***you can ignore most of this next part, I re-read your post and seeing as you’re going to be day trading, you’ll never hold the shares long enough for this information to be useful***

    After you re-invest the money, capital gains are not realised until you sell the shares, so even if $3000 worth of shares suddenly become $30,000 worth of shares, you still would pay no tax on it, as the capital gains (income) is only realised after you convert the shares into cash by selling them. This gets tough, because if you choose to sell the shares during a year in which you have made a lot of money, the capital gains would be in a higher tax bracket, if you want to sell them you should always do it in a year in which your income has been low.

  2. hubertxiv Says:
    July 25th, 2010 at 5:37 am

    Don’t tell anyone, but I trhink you already have.

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