Investment income is taxed differently depending on its type. Dividends, interest, rental income, and trust distributions are generally included in your assessable income in the year you receive them. Capital gains from selling investments are also included in your income, but the 50% CGT discount may apply if you held the asset for more than 12 months. Franking credits attached to Australian company dividends can offset or eliminate your tax on that income.
Understanding how investment income is taxed — and in what order the different rules apply — is essential for anyone holding shares, ETFs, property, or crypto in Australia.
Shares and Dividends
- Tax on Shares in Australia — When you pay tax on share income: dividends when received, CGT when you sell, and the distinction between the two
- Dividend Tax Australia — How Dividends Are Taxed — Dividends are included in assessable income, franking credits reduce your tax, and excess credits are refundable in many cases
- Franking Credits Explained — Dividend Imputation — How Australian companies pass corporate tax paid to shareholders, how to use the credit, and refundability for low-income investors
- How to Report Share Income on Your Tax Return — Where dividends and CGT appear in myTax, how ATO pre-fill works for ASX shares, and what you need from your broker statement
ETFs and Managed Funds
- Tax on ETF Investments in Australia — Income distributions (cash, dividends, capital gains components) and CGT on sale — and why ETF tax can be more complex than direct shares
- Managed Fund Tax — How Distributions Are Taxed — Trust distributions include multiple components (interest, dividends, capital gains, foreign income) each taxed differently
- Index Fund vs ETF Tax — Is There a Difference? — The tax treatment of on-market ETFs versus unlisted managed funds and when it matters
Cryptocurrency
- Crypto Tax Australia — ATO Rules Explained — The ATO’s position: crypto is a CGT asset, not currency; every sale, swap, or use of crypto is a taxable event
- How to Calculate and Report Crypto Tax — Tracking cost bases across multiple purchases, FIFO vs specific identification, and reporting in your tax return
- Crypto to Crypto Swaps — Are They Taxable? — Exchanging Bitcoin for Ethereum is a disposal for CGT purposes, even though you didn’t receive AUD
Property Income
- Tax on Rental Income Australia — Rental income is assessable, the full range of allowable deductions, and the difference between negative gearing and positive gearing
- Negative Gearing Explained — When your rental expenses exceed income, the net loss reduces your taxable income — how it works, who benefits, and what has been proposed to change it
This section provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.