How Capital Gains Tax (CGT) affects shares and units
For CGT purposes, shares in a company or units in a unit trust
are treated in the same way as any other CGT assets.
As a general rule, if you acquire any shares or units on or
after 20 September 1985, you may have to pay tax on any capital
gain you make when a CGT event happens to them. This would
usually be when you sell or otherwise dispose of them. It also
includes where you redeem units in a managed fund by switching
them from one fund to another.
Profits on the sale of shares held in carrying on a business of
share trading are included as ordinary income rather than as
A CGT event might happen to shares even if a change in their
ownership is involuntary - for example, if the company in which
you hold shares is taken over or merges with another company, this may result in a capital gain or capital loss.
A CGT event also occurs if you:
- Receive non-assessable payments from a company;
- Receive non-assessable payments from a trust; or
- Own shares in a company that has been placed in liquidation or
administration and the liquidator or administrator has declared
the shares (or other financial instruments) worthless.
There are a number of special CGT rules if you receive from a
company or trust such things as:
- Rights or options to acquire shares or units; or
Special rules also apply if you buy convertible notes or
participate in an employee share scheme or a dividend
Our dedicated team can assist you with queries relating to
how Capital Gains Tax affects your shares. Complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) +61 2 9223 9166 to
arrange an appointment.