If you own shares, Exchange Traded Funds (ETFs), or cryptocurrency, it’s important to understand your obligations when it comes to capital gains tax (CGT). The ATO requires accurate record-keeping to calculate any gains or losses when you sell, trade, or otherwise dispose of these assets. Failing to keep proper records can lead to mistakes on your tax return — or worse, penalties if you’re audited.
Here’s what you need to know about keeping records for capital gains.
1. Keep records from the moment you acquire the asset
For every share, ETF, or crypto purchase, make sure you record:
- Date of acquisition
- Purchase price (including brokerage or transaction fees)
- Number of units/coins acquired
- Any costs associated with acquiring the asset
These details form the cost base, which is essential to calculate your capital gain or loss when you sell.
2. Track changes over time
If you acquire more units of the same asset at different times, or receive additional units through dividends, bonuses, or airdrops, each acquisition must be recorded separately.
- Document dates, amounts, and costs for each transaction
- Keep records of reinvested dividends or crypto staking rewards
This ensures your CGT calculation is accurate and allows you to apply discounts correctly if you’ve held the asset for over 12 months.
3. Keep records of disposals
When you sell, trade, or otherwise dispose of shares, ETFs, or crypto, record:
- Date of disposal
- Sale price (less brokerage or transaction fees)
- Number of units sold
- Any associated costs
These records, combined with your acquisition records, allow you to calculate your capital gain or loss.
4. Include supporting documents
The ATO expects you to retain supporting evidence, such as:
- Broker statements or trade confirmations
- Crypto exchange transaction history
- Bank statements showing deposits or withdrawals
- Records of corporate actions (e.g., mergers, splits, rights issues)
Supporting documents make it easier to substantiate your calculations and defend your position if audited.
5. Keep records for at least five years after disposal
The ATO requires you to retain all records relating to a capital asset for at least five years after you lodge your tax return for the year you dispose of it.
If you haven’t sold the asset yet, it’s essential to keep all acquisition, transaction, and supporting records. You’ll need these details when you eventually dispose of the asset to calculate your capital gain or loss accurately.
6. Consider digital record-keeping
Keeping digital records in one place makes life much easier. Most brokers, crypto exchanges, and investment platforms provide downloadable statements.
- Save PDFs or CSVs of all trades
- Back up your records securely
- Organise them by asset type and date
A clear, digital filing system will make tax time less stressful and ensure you have everything the ATO could ask for.
7. Why good record-keeping matters
Accurate records ensure:
- Correct CGT reporting on your tax return
- Eligibility for the 50% CGT discount on assets held for over 12 months
- Proof in case of ATO queries or audits
- Efficient tracking of losses to offset against gains
Even small mistakes can lead to incorrect tax calculations, so it pays to stay organised.
Need help getting your capital gains records in order?
If you’re unsure about your share, ETF, or crypto records — or need help calculating gains and losses — our team can assist. We can:
- Review and organise your transaction history
- Ensure cost bases and disposal records are accurate
- Prepare your CGT calculations for your tax return
Proper record-keeping now saves headaches later. Let’s make sure you’re ready before you sell.
