What happens when I sell shares?
Understand the tax issues that may arise when selling shares, including capital gains tax and record keeping.
Summary
When you sell shares, a capital gains tax event may occur. You may make a capital gain or capital loss depending on the sale proceeds, cost base and other relevant amounts.
What this means
The ATO provides guidance on shares and similar investments, investment income and CGT. Selling shares can also interact with dividend records and other investment records.
Investors need to keep purchase and sale records to calculate any capital gain or loss.
Typical actions
- Keep purchase and sale confirmations.
- Work out the cost base and sale proceeds.
- Check whether a CGT discount may apply.
- Declare capital gains or losses where required.
- Keep records even after the sale.
Official ATO sources
Last checked: 20 June 2026
Shares and similar investments
Explains tax issues for shares and similar investments.
Capital gains tax
Explains CGT and capital gains or losses.
Keeping records for investments and assets
Explains investment records needed for CGT calculations.
Related questions
- What is capital gains tax?
- When does CGT apply?
- How does tax work on dividends?
- What records should investors keep?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
Need help understanding this in plain English?
Try the Tax Clarity App for a plain-English answer.