BlogSharesight Features & Tips

Capital gains tax calculator for Australian investors

by Angela Thompson, Sharesight

If you’re looking to calculate the capital gains tax on your investment portfolio for the 2018-2019 tax year, then you’ve come to the right place. Sharesight’s award-winning investment portfolio tracker includes a powerful Australian Capital Gains Tax Report that does exactly that. Built by self-directed investors, for self-directed investors, the report:

  • Takes care of the maths so you don’t have to struggle with a complicated spreadsheet.
  • Optimises your tax position by letting you experiment with different sale allocation methods.
  • Is available to run at any time, over any time period. So not only will you have the information you need at tax time, but throughout the year. This means fewer surprises when the next tax season rolls around.

featured - Capital gains tax calculator for Australian investors

Calculate your portfolio CGT with Sharesight

Sharesight’s Capital Gains Tax Report calculates capital gains made on sold shares as per Australian Tax Office (ATO) rules (for those of you in Canada, we also offer a Canadian CGT Report).

You may run the report over any period in order to see:

  • The CGT position for all your holdings sold within the period.
  • Your CGT gains broken-up into short and long term, as well as your losses.
  • A summary of the short and long term gains and losses, as well as any capital gain or claimable loss.

Sharesight Australian CGT Report 2018-2019Click on image to enlarge

Australian tax settings

The Capital Gains Tax Report uses the ‘discount method’ for shares that have been held for more than 1 year and the ‘other method’ for shares held for less than one year. The discount rate is based on the Australian tax settings you select when setting up your portfolio:

  • Individuals / Trust – CGT discount of 50 %
  • Self Managed Super Fund – CGT discount of 33⅓ %
  • Company – CGT discount of nil

Sale allocation methods

The Capital Gains Tax Report also allows you to specify the sale allocation method at the overall portfolio and individual holding level to determine your optimum position, including:

  • First In, First Out (FIFO) – Sharesight assumes that you sell your longest held shares first.
  • Last In, First Out (LIFO) – Sharesight assumes that you sell your most recently purchased shares first.
  • Minimise Gain – Sharesight assumes that you sell shares with the highest purchase price first.
  • Maximise Gain – Sharesight assumes that you sell shares with the lowest purchase price first.
  • Minimise CGT – Sharesight assumes that you sell shares that will result in the lowest capital gains tax first. This method is more sophisticated than the ‘Minimise capital gain’ method because it takes into account the Australian CGT discounting rules.

The sale allocation method can be changed for specific holdings or for the entire portfolio:

Sharesight Sale Allocation Methods - CGT Report AU 2019

Notes on the Capital Gains Tax Report

  • You may carry forward any losses from the previous reporting period.
  • Once you’re happy with your report, you may choose to “lock” it. This allows you to alter the sale allocation methods in future reporting periods without invalidating the result for previous periods.
  • For more information visit the Australian Capital Gains Tax Report help page.

Other helpful features

  • Download your CGT Report – As with all of Sharesight’s reports, your entire Capital Gains Tax Report can be downloaded to Excel, PDF or Google Sheets.
  • Share your portfolio with your accountant – With your capital gains and losses automatically sorted, you should save on accounting fees this tax season. Why not take it a step further by sharing secure portfolio access with your accountant? They’ll have everything they need at their fingertips – not just at tax-time but throughout the year.

Simply the best portfolio tracker for Australian investors

Join thousands of Australian investors already using Sharesight to manage their investment portfolios. To get started for FREE, simply sign-up, import your holdings and watch as corporate actions such as dividends and stock splits are automatically incorporated. If you decide to upgrade, you’ll unlock advanced features and everything you need to run your tax reports and gain unparalleled insights into your portfolio performance throughout the year. And as an Australian tax resident, you can save even more by claiming your Sharesight subscription fees on your tax return1.

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FURTHER READING

IMPORTANT DISCLAIMER
We do not provide tax advice. Make sure you seek appropriate tax advice before implementing the ideas in this post.

1 If you derive income from the sharemarket, your Sharesight subscription may be tax deductible. Check with your accountant for details.

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