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You and your shares 2011-12

Information on income you declare, deductions and credits you can claim, and records you need to keep.

Last updated 27 October 2016

How to obtain this publication

You can download this publication in Portable Document Format (PDF) - download You and your shares 2012 (NAT 2632, PDF, 556KB).

To obtain a printed copy of this publication:

  • use our automated self-help publications ordering service at any time. You need to know the full title of the publication to use this service
  • phone our Publications Distribution Service on 1300 720 092. You can speak to an operator between 8.00am and 6.00pm Monday to Friday. Before you phone, check whether there are other publications you may need; this will save you time and help us. For each publication you order, you need the full title

About this guide

You and your shares 2012 (NAT 2632) will help people who hold shares or bonds as an investment to understand their tax obligations. It covers:

  • how dividends received by Australian resident and non-resident individuals are taxed, and
  • the type of expenses you may be able to claim against dividend income.

If you acquired shares after 19 September 1985, capital gains tax (CGT) may apply when you dispose of them. For more information, see the Personal investors guide to capital gains tax 2012 (NAT 4152).

Who should use this guide?

Use this guide if you are an individual taxpayer who holds shares or bonds as an investment.

This guide will also help people who carry on a business of trading in shares. However, it does not deal with the specific taxation of shares held as trading stock or with the profits or losses arising from the disposal of such shares. If you need further advice on these aspects of owning shares, contact us or a recognised tax adviser.

The new TOFA rules

The Taxation of Financial Arrangements (TOFA) rules generally only apply to individuals who elect for them to apply, or where a financial arrangement (such as a bond) lasts more than 12 months from the time when you start to have it and there is a significant deferral of the income or gain. The TOFA rules are new taxation laws that modernise the taxation of gains and losses from financial arrangements such as company bonds, convertible notes, derivatives, and term deposits.

Generally the TOFA rules will apply to individuals from the 2009-10 income year who elect for this to happen. If you are an individual who has elected for the TOFA rules to apply to your tax affairs, or you have invested in a financial arrangement where there is a significant deferral of income or gain and the bonds last more than 12 months from the time when you start to have it, you will need to complete additional labels on your 2012 tax return.

See Completing the tax return for individuals where the TOFA rules apply. This will help you to complete your 2012 tax return by showing you where to report any TOFA gains and losses from your financial arrangements.

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