What is the tax rate when you sell shares in australia?

-The difference between how much you paid and how much you sell the shares for is a capital gain. Capital gains in Australia are treated as income and as a result the tax rate is whatever rate of tax your income is subject to.



There are a few things that can reduce the capital gain though. The first is if you have held your shares for longer than 12 months before selling them, you will receive a 50% discount. So if you made $1000 profit (You bought for $500 and then sold for $1500), then you will be taxed on $500. It is important to note that the discount applies on AFTER you have applied any capital losses you have made during the financial year. For example, if you made $1000 from you sale, but lost $400 from a sale of another set of shares then your discount will be $1000-$400 = $600. Then apply the 50% discount and you will be taxed on $300.



If you acquired the shares before 1985 then you pay no tax and if you acquired before 1999 then there is index method you can use. If this is the case then ask another yahoo question:)



So, when you sell shares in Australia the gain you make between buying and selling price is added to your income (after discount is applied if you are eligible) and is taxed at whatever marginal tax rate you are on.