Questions from a newbie about tax and my portfolio

[jaydebono]

Hi everyone,

This is my first post and im new to the forum, have just gotten in to the share market.

I've been reading like crazy and learning as much as I can about shares, done a fair bit of paper trading and have now made a few purchases.

I have a question regarding tax:

A couple years ago I worked for the CBA and I engaged in an employee share purchase plan, these were issued to me at $34 per share.

The following year all employee's were issued some shares, valued at around $44 (I cant remember exact figure I have it in my paperwork).

I have now set up an online broker and transferred my shares from the registry holding, to the broker.

So my question is, suppose I decide to sell 30% of my CBA shares (Which i have, to diversify my portfolio), what do i claim as my gain at tax time? Do I reference from the $34 purchased shares or the $44 issued shares?

Thanks in advance for any help given!

I would view myself as a long term investor dabbling in a few short (day trade or a couple of day trades), to medium range trades.

My plan for my portfolio is, starting with 20k, i will add roughly 10k per year in to the portfolio to build it up over time, I want to diversify my portfolio in to -

85% ASX 200 shares
10% medium-high volatility
5% high volatility

With no more then 10% in any one trade, as my portfolio grows larger I will down grade this to 8%, 6% and finally settle on around 4%.

Would that be a good spread of the portfolio?

I made my first day trade today, I picked up shares in the morning with ADI at 0.335 & sold again after 12 for about 0.380!

 

[Julia]

Re: Questions from a newbie around tax & couple of other things

A couple years ago I worked for the CBA and I engaged in an employee share purchase plan, these were issued to me at $34 per share.

The following year all employee's were issued some shares, valued at around $44 (I cant remember exact figure I have it in my paperwork).

I have now set up an online broker and transferred my shares from the registry holding, to the broker.

So my question is, suppose I decide to sell 30% of my CBA shares (Which i have, to diversify my portfolio), what do i claim as my gain at tax time? Do I reference from the $34 purchased shares or the $44 issued shares?

You can choose which parcel you offset the sale against.
Presumably you would choose the $44 purchase in order to minimise your capital gain and therefore tax payable.
Remember that you don't get the 50% discount until you have owned the shares for 12 months.

 

[jaydebono]

Hi Julia,

Thats great news, and I have owned both for over 12 months so very happy

Thanks for your response, much appreciated