Capital Gains Tax (CGT) on Shares and ETFs for Beginners | Australian 2024 Tax Return

[@maximiliancrunchyroll131]

I wish you showed the example by filling out the cgt section in mytax. Think the is what most peole are looking for. A suggestion

[@MoneywithDan]

I made a seperate video where I do exactly that, which you can find here kzbin.info/www/bejne/kJaZfIxqqciGn7c

[@maximiliancrunchyroll131]

@@MoneywithDan Awesome thanks Dan. 😊

[@joicemtfitz2237]

Thanks this helped!

[@MoneywithDan]

You’re welcome. There are a few more videos about tax on my channel that may also help. Plenty more videos on the way if you wanted to subscribe and be notified when they are uploaded.

[@rjpatel2009]

Hi Dan, fantastic videos! It is my first year holding ETFs and in putting this information in my tax return. This is all very helpful for the ETFs that I've bought and kept. However, I sold some ETFs I had in NDQ.ASX as I wanted to consolidate and ended up with a capital loss for those. I have sold some shares of DMP.ASx & CXO.ASX iand there is also some loss. My doubt is - can I report total loss combining “both shares and ETF” loss and report the same together in Capital Gain field of myTax?

[@MoneywithDan]

Thanks for watching. So if you have a combined capital loss position for the tax year as you describe, then you would report zero net capital gain in your tax return and then carry forward the combined unused losses to be applied against future capital gains. Most capital losses can be combined and carried forward against future capital gains, except for some CGT events like a loss from personal use assets (e.g. boats, furniture).

[@TKsolotravel]

Thanks for informative information, I was wondering after Having worked in a bank, we were given shares during employment. How would cgt be based on these as they were gifted and it’s now 15yrs later.

[@MoneywithDan]

Were you taxed under the Employee Share Schemes (ESS) rules at the time? More information can be found here community.ato.gov.au/s/question/a0J9s0000001JYG/p00051458

[@pnastov1]

Great video. As of 2023 the CGT report in sharesight is now only for premium users. Is there another free tool you know of to calculate the CGT report including DRP?

[@MoneywithDan]

Yeah that is a shame and a very recent change. The ATO has a CGT calculator in the Tax return that is free. Obviously not that great. Let me explore further and I will look for an alternative but not looking that great.

[@derekpun]

Great video! Very helpful! Just one question, How do you calculate capital gain from a joint managed fund distributions?

[@MoneywithDan]

Thanks a lot. A joint holding usually means half of the net capital gains goes in your tax return and the other half goes in the other owners tax return.

[@daniela55577]

Do you have a step-by-step video on how to add dividends in your tax return? I do my own taxes and only one of my investments has automatically been added. Any help would be great.

[@MoneywithDan]

Hi Daniela. Sorry I don’t have a video about this. Some dividends and distributions from ETF income may not show in the prefill upload until mid September. Also if these are overseas shares or units they will never be included in the prefill. Is your investment in an etf like VAS or something similar?

[@daniela55577]

@@MoneywithDan Hi Dan, thanks for your reply. I received the financial year summary in my Computershare account however, no prefill. I have two Vanguard stocks - VGAD and VDGR.

[@MoneywithDan]

@@daniela55577 no problem. Vanguard sent out the tax statement by email last week and hopefully you have received that. On the Vanguard tax statement it lists the different types of income and next to each type of income it tells you the box number that each income type should be reported in your return. The statement includes more income types like capital gains tax and foreign income. ETFs are from Vanguard are not shares so they usually have more to disclose in the tax return then dividends. Unfortunately the prefill for Vanguard funds is usually populated in late August or early Sep.

[@daniela55577]

@@MoneywithDan It's quite an in-depth tax statement...so much to learn still in this space. Thanks, I'll hold off until September. I appreciate your help!

[@MoneywithDan]

No problem. I will work on a video on how to do this. It’s not as bad it looks

[@dinimit4]

Hey Dan, appreciate the videos and im going through lots of them. I have a question though, if I've made a mistake and failed to declare a capital gain from a previous financial year (22-23) how can i rectify this? Or if ive submitted my cureent tax return but failed to declare all of my capital gains how could i recify that? I've found when starting to invest apps like comsec pocket make it easy to buy or sell but they dont warn you how much grief you'll be attracting on your tax return!

[@MoneywithDan]

Thanks for watching. That is a common mistake and sorry to hear that. Sounds like you need to lodge a tax return amendment for the year lodged. I created a video that explains how to fix a mistake in detail that you can watch with the link below: How to Fix a Mistake in Your 2023 Australian Tax Return 👍 kzbin.info/www/bejne/hpmomaB4h7GYfMU

[@dinimit4]

Went through and found that video already. Honestly your production quality and explanations are second to none, MyGov should link directly to your channel in the help section. You've given me more help than anywhere else in a fraction of the time. THANKYOU, I'll be recommending you to anyone with tax questions in future.

[@MoneywithDan]

@@dinimit4thanks so much for your kind words. I’m so glad that these videos help. Best wishes!

[@judassss]

Example. You buy $1000 of Tesla shares which is 4 shares @$250/share. The shares increase in vales to $500/share. You sell 2 Shares @$500/share and keep 2. Is your capital gain zero from this transaction? Thanks

[@MoneywithDan]

In short - no. It sounds like you may have a taxable capital gain

[@slug2009]

Hi Dan, Thank you for this video ! This is my first Share sale , But my shares are in GPB . Do i need to convert them to AU ? Here is the details : Quantity - Shares 174 units 8.052 GBP Sale proceeds 1 401.05 GBP Sale price Debits Commissions -35.00 GBP Total debits -35.00 GBP Net proceeds 1 366.05 GB Thank you.

[@MoneywithDan]

Thanks for watching. Yes you should convert on the dates of the transaction to AUD (buy and sell dates). You can get conversion rates off many free websites.

[@rjpatel2009]

Thanks Dan for reply. For clear understanding - Can I report Capital Gain combining gains of Shares and ETF together in myTax?

[@MoneywithDan]

Yes that’s correct

[@jianwei8781]

Does non tax resident (foreigner) need to pay for capital gain tax for profit in selling share/stock?

[@MoneywithDan]

Good question. Normally Foreign and temporary residents are subject to CGT only on taxable Australian property, such as real estate in Australia and assets used to carry on a business in Australia. Also, the 50% CGT discount is generally not available to foreign and temporary residents for assets acquired after 8 May 2012. Read more here: www.ato.gov.au/Individuals/Capital-gains-tax/Foreign-residents-and-capital-gains-tax/Your-residency-status-and-CGT/

[@aliahmadi5314]

What happens if you don’t sell your capital gains at the end of the year, do we pay tax on that capital gain at the same year or whenever we sell it?

[@MoneywithDan]

Thanks for watching. No potential capital gains tax until you sell your interest in asset or otherwise dispose of them (transfer to someone else) in Australia. However ETFs can distribute capital gain to you that it incurs on your behalf which you would see in the Tax Distribution statement sent from the ETF around August each year.

[@MoneywithDan]

💰 If you’re looking for a free and easier way to calculate your capital gains on Shares, ETFs and Crypto then I recommend using SHARESIGHT which you can learn more here - www.sharesight.com/moneywithdan/ (BONUS When you signup using this link, the first 4 months of subscription are free if you choose to upgrade to an advanced plan and I may get a small my commission at no extra cost to you, so we both win!)

[@Mark-wt7xl]

This month the first time l ever got $643. Not the tax man getting He's cut,😪

[@MoneywithDan]

Nice one! Well done.