Investing and tax

Last updated: 2 October 2026

Investing can affect the amount of tax you pay. You may need to declare investment income and capital gains in your tax return.

How investments are taxed

Tax on investment income

You must include income you earn from investments in your tax return.

Common types of investment income include:

• interest from savings accounts and term deposits
• dividends from shares
• rental income from investment property
• distributions from managed funds

Investment income is generally added to your other assessable income. The amount of tax you pay depends on your circumstances and marginal tax rate.

Some dividends and distributions come with franking credits that reflect tax already paid by a company. This can help prevent the same income being taxed twice. Franking credits may reduce the tax you need to pay.

Investing and tax can be complex. If you need professional help with your tax, use a registered tax agent.

See choosing an accountant for where to go for help. Before choosing a tax agent, check they're registered on the Tax Practitioners Board's tax practitioner register.

Tax when you sell an investment

If you sell investments such as shares, investment properties or crypto assets, you may need to pay capital gains tax (CGT).

Generally, you make a capital gain if you sell an asset for more than it cost. You make a capital loss if you sell for less.

Add up your gains and losses for the financial year. If you have a net gain, include it in your tax return. If you have a net loss, you can generally use it to reduce gains in future years.

CGT can also apply when you give away an asset, swap it for something else, or it is lost or destroyed.
To learn more, see the ATO's guidance on calculating CGT.

In the 2026 Federal Budget, delivered Tuesday 12th May, the government announced future changes to the application of capital gains tax. Please make sure you take these changes into account when considering future investments. Visit the Australian Taxation Office (ATO) for more information.

Claim investment deductions

You may be able to claim deductions for expenses related to earning investment income.

There are rules around what you can and can’t claim and when you can claim it. The ATO has useful info on investment income deductions.

Depending on the investment, you may be able to deduct:

• interest charged on money borrowed to invest
• some investment property expenses
• investment journals and subscriptions
• some investment advice fees

Other costs are not immediate deductions but may form part of your cost base and reduce a future capital gain.

If your deductible investment costs are more than your investment income, you can generally deduct the loss against other taxable income.

In the 2026 Federal Budget, delivered Tuesday 12th May, the government announced future changes to the application of negative gearing. Please make sure you take these changes into account when considering future investments. Visit the Australian Taxation Office (ATO) for more information.

Investing and your tax return

Keeping good records will help you:

• report investment income
• claim all tax deductions you're entitled to.

It will also help you calculate any capital gains or losses when you sell an investment.

For investments such as shares, property, and crypto assets you need to keep records to show:

• how much you paid for it - contracts for purchase of the asset and receipts
• how much you sold it for - contracts for the sale of an asset and receipts
• income you get from the investment - keep all records of income payments such as distribution statements, rental payment receipts and dividend statements
• expenses paid while owning the investment - receipts for payments made to manage, maintain or improve the investment.

The ATO's myDeductions tool can help you track expenses, store receipt photos and keep your tax records organised throughout the year. 

Find out more about lodging a tax return and finding a registered tax agent.