Tax tips for investors

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Our investor tips can help you increase your wealth, whether you invest in property, finance or other assets

Many Australians invest in property, financial markets and other assets, both in Australia and overseas. Managing the tax on your investments can help you increase your wealth.

The ATO’s data matching and information-gathering capabilities are significant and cover many capital transactions and investment revenue streams. This is an area that they are spending considerable time and resources, so its pays to keep accurate records! 

Property investments

Cryptocurrencies and digital assets

Exchange-traded funds

Investment deductions

You can claim a deduction for expenses incurred in earning interest, dividends or other investment income, but not for exempt dividends or other exempt income.

Examples of investment deductions include:

  • account-keeping fees for investment accounts
  • interest on money borrowed to buy shares and other related investments
  • ongoing management fees or retainers and amounts paid for advice 
  • a portion of other costs, such as some travel expenses, investment journals and borrowing costs.

If you attend an investment seminar, you are only entitled to claim a deduction for the portion of travel expenses relating to some investment income activities. Talk to us (ideally before you incur the costs) to identify the proportion that will be deductible on your tax return.

Investment products

You can claim a deduction for expenses incurred in earning interest, dividends or other investment income, but not for exempt dividends or other exempt income.

Towards the end of the financial year, you may see the promotion of investment products that claim to be tax-effective. Check to see if a product ruling is available or if a taxpayer alert has been issued by the ATO.

You should form your own view about the commercial and financial viability of a product. Consider seeking independent advice. Remember the old saying – if it sounds too good to be true, it probably isn’t!

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