Things you need to know
To claim a deduction for dividend expenses, you must have incurred expenses in earning any income from dividends and distributions. Dividends and distributions are amounts that were paid or credited to you by Australian companies that you had shares in. This includes dividends applied under a dividend reinvestment plan, or otherwise dealt with on your behalf.
If a listed investment company (LIC) paid you a dividend that includes a capital gain amount, you can claim a deduction of 50% of the LIC capital gain amount at this question. The LIC capital gain amount shows separately on your dividend statement.
What you can claim as a dividend deduction
Dividend expenses you can claim a deduction for may include:
- management fees and fees for investment advice related to changes in the mix of your investments
- interest you paid on money you borrowed to buy shares or similar investments
- costs related to managing your investments, such as travel and buying specialist investment journals or subscriptions.
You can also claim 50% of the LIC capital gain, see Listed investment company dividend capital gains concession.
If you borrowed money to buy assets for both private use and income-producing investments, you could claim only the portion of the interest expenses related to the income-producing investments.
Interest you incurred on investments you made using a capital protected borrowing may not be fully deductible. To help determine if you can deduct the full amount, see Capital protected products and borrowings.
If you incurred expenses related to certain overseas investments (or investments in Australia if you're a foreign resident), the thin capitalisation rules may affect your deductions. These rules may apply if the total of your debt deductions and those of your associates were over $2 million for 2025–26. For more information, see Thin capitalisation – how the rules work.
For more information on deductions you can claim, see Dividend income deductions.
You can also claim the decline in value of your computer using the percentage of your total computer use that related to managing your investments. If you used your computer to manage both your investments to produce interest and investments in shares or similar securities, you could claim only the proportion of the decline in value relating to managing those investments once, at either question D7 or D8. If you're claiming a deduction for the decline in value of your computer, see Guide to depreciating assets 2026.
What you can't claim as a dividend deduction
You can't claim expenses for:
- financial advice you receive from someone who isn't either a:
- tax agent with a current Tax Practitioners Board registration
- qualified tax relevant provider with a current Australian Securities and Investments Commission registration
- some interest expenses where you borrowed money under a capital protected product or borrowing
- brokerage fees and other transaction costs.
You also can't claim expenses for charges on an investment proposal before the acquisition of an asset unless you're carrying on an investment business, in which case you claim any expenses at P8 Business income and expenses in the Business and professional items schedule 2026.
If this applies to you, you should lodge your tax return using myTax or a registered tax agent. If you're unable to use myTax or a registered tax agent, contact us and we'll send you a paper tax return that includes the Business and Professional items schedule 2026.
Don't show at this question
Don't show at this question any dividend expenses you incurred in:
- earning trust and partnership distributions – show these at question 13 – labels X and Y in your supplementary tax return
- earning foreign source dividends – show these at question 20 or question D15 in your tax return.
If you don't have any dividends or distributions deductions, go to question D9 Gifts or donations 2026.
What you need to answer this question
You may need written evidence of your dividend and distribution expenses. Most of the records you need will be given to you by the company, the fund manager or your stockbroker. These may include receipts for subscriptions and bank statements showing the interest and bank fees you pay. See, Keeping records of shares and units.
You'll also need your LIC dividend statement which shows the capital gain amount. Show dividends you receive from a LIC at question 11.
If you have joint share investments or similar investments, show only your share of the joint expenses. If you held the investment equally with one other person, this will be half. Keep a record of how you work out your proportion if you and the other investors don't share the expenses equally.
If you don't have dividend deductions, go to question D9 Gifts and donations 2026.
Completing your tax return
To complete this question, follow the steps.
Step 1
Add up all your deductions for this question.
Step 2
Write the total amount at question D8 – label H.
Where to go next
- Go to question D9 Gifts or donations 2026.
- Return to main menu Individual tax return instructions 2026.
- Go back to question D7 Interest deductions 2026.