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by Stella Ong

Stake Academy - Tax Time In Australia

Invest in knowledge and continue your investing education with our quick Stake Academy crash course on things to know at tax time.

With tax time approaching, we’ve put together a non-exhaustive list of considerations to help you make more informed decisions when considering your tax obligations. Everyone’s situation is different though, so be sure to seek some personal advice from a tax professional.

Tax Events

Any sale of stock triggers a tax event. That’s an implication on the tax you owe depending on any gains or losses. Capital gains and losses take two factors into account:

  • Change in the value of the stock between trades (both Wall St and AUS).
  • Change in the value of the USD/AUD exchange rate between the buy and the sell. This is relevant for Wall St investing only.

On top of share sales, dividend payments immediately are also subject to taxes as they are classified as income. Read here about the U.S. withholding tax on dividends and the benefits of the W-8Ben form we filled out on your behalf when you joined Stake.

Changes in the exchange rate must also be considered when you withdraw funds.


It’s important to know that your capital gains change depending on how long you held the stock.

Short-term capital gains: shares held for less than 12 months are subject to the full applicable tax rate.

Long-term capital gains: shares sold after 12 months may be eligible for a 50% discount on applicable taxes.

🎓 Learn more: What capital gains tax on shares will I pay?


Another acronym, Stake operates under a First In, First Out system. If selling only a portion of your shares, the cost price of the first shares you bought, rather than the average price, will be used when calculating tax.


You buy 100 shares at $10
Total cost $1,000
Average share price $10

A week later, you then buy 100 more at $15. You now own 200 shares.
Total cost – $1,000 + $1,500 = $2,500
Average share price = $12.50

The price reaches $20 so you decide to sell 100 of your shares.

Even though your average price is $12.50, the first 100 shares purchased at $10 will be sold first.

This triggers $1,000 (100 shares sold at $10 gain) in CGT will be triggered (not considering fluctuation of the dollar).

Stake Tax Tools

From 1 July 2023, you can head to your Stake AUS or Stake Wall St settings and select Tax & Documents. Your full transaction history from the last financial year will be right there. You can export the report as a PDF or CSV to help you complete your returns yourself or with your accountant.

Portrait photo of Stella Ong, Markets Analyst at Stake.

Stella Ong

Markets Analyst

Stella is a markets analyst and writer with almost a decade of investing experience. With a Masters in Accounting from the University of Sydney, she specialises in financial statement analysis and financial modelling. Previously, she worked as an equity analyst at Australian finance start-up, Simply Wall St, where she took charge of the market insights newsletter sent out to over a million subscribers. At Stake, Stella has been key to producing the weekly Wrap articles and social media content.


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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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