1st year trading - tax return

[Trucksyd]

Gday . I’ve almost done my 1st year of trading & done ok, I am unemployed-mid 50,s ,I understand I can earn up to 18k through share profit & not be taxed. After that do the ato slug me on short term capital gains . Thanks

 

[Value Collector]

Gday . I’ve almost done my 1st year of trading & done ok, I am unemployed-mid 50,s ,I understand I can earn up to 18k through share profit & not be taxed. After that do the ato slug me on short term capital gains . Thanks

Obviously clarify everything with an accountant.

But, all capital gains will be added to your tax return along with any other tax able income you get like dividends etc, and you will pay tax on them at your marginal rate,

if you hold the shares for more than 12 months, only 50% of the capital gain is added to your tax return, (this is called the capital gains tax discount)

it doesn’t matter where the taxable income came from eg capital gains, dividends, Uber driving etc etc it all gets added to your tax return, your expenses get deducted, and you pay tax on the net amount.

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[Sean K]

Gday . I’ve almost done my 1st year of trading & done ok, I am unemployed-mid 50,s ,I understand I can earn up to 18k through share profit & not be taxed. After that do the ato slug me on short term capital gains . Thanks

You really should be putting your trading through a tax agent to manage your return. From what you've said, your main business or professional activity would be classified as Financial Asset Investing, if you're actively trading/investing. I assume you already do have a tax agent / accountant so give them a buzz for exactly where you sit.

 

[Trucksyd]

I will go in early this year to sort it out thanks

 

[Garpal Gumnut]

Gday . I’ve almost done my 1st year of trading & done ok, I am unemployed-mid 50,s ,I understand I can earn up to 18k through share profit & not be taxed. After that do the ato slug me on short term capital gains . Thanks

A major consideration to run over with your accountant is whether to file your return as a trader or an investor. In the former you pay tax on profits and the latter on capital gains and dividends. Also whether to go as a sole trader or through a company depending on your profit. There is no point in legally minimising tax and paying unnecessary expenses.

Tax Avoidance vs Tax Evasion in Australia: Key Differences & Consequences

Tax avoidance refers to the legal methods individuals and businesses use to minimise their tax liability while still adhering to the tax laws in Australia. Tax evasion, on the other hand, is a serious criminal offence in Australia.

bambricklegal.com.au

Keep all your receipts, IT, phone, computer, investing books/courses and purchases, and claim reasonable expenses.

All the best.

gg