Share income — dividends and capital gains — must be reported in your annual Australian tax return. The ATO pre-fills some dividend data from share registries, but you are responsible for verifying it and for reporting any capital gains or losses from share sales yourself. Getting this right ensures you neither overpay tax nor face ATO follow-up for unreported income.
What You Need to Report
| Income type | Where in your tax return |
|---|---|
| Dividends (cash + franking credits) | Interest, dividends and other income |
| Managed fund and trust distributions | Trust distributions section |
| Capital gains from share sales | Capital gains section |
| Capital losses (carried forward or current year) | Capital gains section |
Step 1 — Gather Your Documents
Before starting your tax return, collect:
- Dividend statements from each company (issued by share registries — Computershare, Link Market Services, Boardroom)
- CHESS holding statements or broker annual tax statements
- Your broker’s tax summary (most brokers — CommSec, SelfWealth, Stake, Superhero — provide an annual tax report showing all dividends and sales)
- Records of any shares purchased or sold — cost base, sale proceeds, and dates
Step 2 — Check the ATO Pre-Fill
The ATO’s pre-fill service automatically pulls data reported to the ATO by:
- Australian share registries (dividends and franking credits)
- Managed funds (trust distributions)
In myTax: After logging in, navigate to the “Income” section and look for “Interest, dividends and other income.” The ATO may have pre-populated dividend income for you.
Always verify the pre-fill. It may be incomplete (particularly for shares held through a broker’s CHESS-sponsored account rather than issuer-sponsored), or it may lag if registries submitted data late. Do not rely on pre-fill as the sole source.
Step 3 — Report Dividends
For each dividend received during the financial year, report:
- Unfranked amount (cash dividend minus franking credit)
- Franked amount (the cash portion that is franked)
- Franking credit (the imputation credit amount — this is the grossed-up credit, not the cash)
- Tax file number (TFN) withholding — if tax was withheld because you did not provide a TFN to the registry
All of these amounts appear on your dividend statement. In myTax, there is a separate row for each dividend with fields for each component.
Foreign Dividends
Dividends from foreign shares are reported separately. Enter the AUD-equivalent amount (using the exchange rate on the payment date or the ATO’s applicable rate) and any foreign withholding tax paid, which may qualify as a foreign income tax offset.
Step 4 — Report Capital Gains and Losses
If you sold shares during the year, you must report the capital gain or loss in the Capital gains section of your tax return.
For each sale, you need:
| Field | How to find it |
|---|---|
| Date of acquisition | Your purchase confirmation or CHESS statement |
| Cost base | Purchase price + brokerage in + any capital costs |
| Date of disposal | Sale settlement date |
| Sale proceeds | Sale price − brokerage out |
| Gain or loss | Proceeds − Cost base |
CGT Discount
If you held the shares for more than 12 months, apply the 50% CGT discount:
- Calculate gross gain: proceeds − cost base
- Apply 50% discount: gross gain × 50%
- Report the discounted gain as your net capital gain
In myTax, there is a specific field to enter discounted capital gains separately from non-discounted ones.
Capital Losses
Capital losses from the current year offset capital gains. Any excess losses are carried forward to future years — you cannot apply them against ordinary income. In myTax, enter current year losses and any prior year losses being applied.
Step 5 — Using Your Broker’s Tax Report
Most Australian brokers provide an annual tax statement or tax pack that consolidates your share activity for the year. CommSec, SelfWealth, Stake, Pearler, and Superhero all offer these reports. The report typically includes:
- All dividends received (with franking credit breakdowns)
- All capital gains and losses (with CGT discount identification)
- A summary of foreign income and withholding
Using your broker’s tax report can significantly reduce the manual effort of compiling your share tax data, but always cross-check it against your dividend statements.
Related Articles
- Dividend Tax Australia
- Franking Credits Explained
- Tax on Shares in Australia
- Capital Gains Tax on Shares
- Tax on Investments hub
- Taxes hub
Frequently Asked Questions
My broker’s tax report shows different amounts to the ATO pre-fill — which do I use? Start with your actual records — dividend statements and broker reports — as these are the primary source documents. The ATO pre-fill may be incomplete or slightly different due to timing. Enter the correct figures based on your records. If you cannot reconcile the difference, contact your share registry or broker for clarification.
Do I need to report shares I bought but did not sell? You only report capital gains or losses when you dispose of shares. Dividends must be reported in the year received. Simply holding shares does not generate a reportable tax event.
What if I forgot to report share income in a previous year? You can lodge an amendment to a prior year’s tax return through myTax or by asking a tax agent. The ATO generally allows amendments for up to two years (for individuals). Voluntary disclosure reduces the risk of penalties if the ATO has not already identified the discrepancy.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.