How to Do Your Tax Return in Australia (2026)

Key Dates

How to Lodge Your Tax Return: Step by Step

Step 1 - Gather Your Income Statements

Employer income usually pre-fills automatically in myTax once your employer finalises payroll reporting. Interest and dividends arrive from banks and share registries, but investors should still check every pre-filled amount against actual statements. Pre-fill is useful, not infallible. If you held multiple bank accounts, broker accounts, dividend reinvestment plans, or managed funds during the year, make a list before you start so no account is forgotten.

For share and ETF investors, collect broker annual summaries, CHESS holding statements, contract notes, dividend statements, AMMA statements for managed funds and ETFs, and any foreign income records. For cryptocurrency, export transaction history from every exchange, wallet, and DeFi platform you used. A small missing crypto swap can become painful later because each disposal needs an AUD market value at the time of the transaction.

Step 2 - Work Out Your Capital Gains and Losses

Every share, ETF, and crypto disposal in FY2025-26 is a CGT event. A disposal can include selling an asset for cash, swapping one asset for another, gifting an asset, spending crypto, or having an asset otherwise cease to be yours. For each disposal, you calculate proceeds minus cost base, then net gains and losses across the year.

Australian resident individuals may apply the 50% CGT discount to capital gains on assets held for at least 12 months. Capital losses offset capital gains before the discount is applied. If losses are greater than gains, the unused capital loss carries forward indefinitely. It cannot reduce salary, business income, interest, or other ordinary income.

Step 3 - Claim Your Franking Credits

Fully franked dividends carry a credit for company tax already paid. That franking credit is included in your assessable income and then claimed as a tax offset against your tax bill. If your franking credits exceed your total tax liability, the excess is generally refundable to you. This is why dividend records matter even when the cash received looks simple in your bank account.

Dividend reinvestment plans need the same care as cash dividends. The dividend is still income, the franking credit still matters, and the reinvested amount becomes part of the cost base for the new parcel of shares. Good records make future CGT calculations easier because the reinvestment date, amount, and acquired units are already captured.

Step 4 - Claim Your Deductions

Common deductions include work expenses and investment costs. Investor-related deductions can include interest on investment loans, portfolio tracking software subscriptions, accountant fees, tax agent fees, and some costs of managing tax affairs. Keep receipts, invoices, bank statements, and notes explaining the connection between the expense and your assessable income.

Deductions should be specific and supportable. A subscription used partly for personal finance and partly for investment tracking may require apportionment. Borrowing costs and interest deductions can also become more complex when a loan has mixed private and investment purposes. When in doubt, ask a registered tax agent before lodging.

Step 5 - Lodge via myTax or a Registered Tax Agent

myTax is the ATO's free online lodgement tool. It suits many taxpayers who have straightforward income, deductions, and investment records. If your return includes many trades, crypto activity, margin lending, foreign assets, business income, rental property, employee share schemes, or carried-forward losses, a registered tax agent can reduce mistakes and extend your lodgement deadline to 15 May 2027 if you are registered with them before 31 October 2026.

Before lodging, reconcile the return against your own records. Check that all income is included, all disposals have cost bases, all carried-forward losses are correct, and all tax offsets are present. Save the final return, assessment notice, working papers, broker exports, and software reports together so next year's opening position is clean.

How OpenFolio Helps Investors at Tax Time

Common Questions

Do I need to report cryptocurrency?

Yes. Every sale, swap, gift, or spend of crypto is a CGT event in Australia, regardless of whether you converted back to Australian dollars.

What if I made a net capital loss this year?

No CGT is payable. The loss carries forward indefinitely to offset future capital gains — it cannot offset ordinary income.

Are franking credits refundable?

Yes. If your franking credits exceed your total tax liability, the ATO refunds the excess directly to you.

Can I deduct my portfolio tracker subscription?

Investment-related software is generally deductible as an expense incurred in managing your investments. Confirm with a registered tax agent for your specific situation.

Definitions

CGT event

Any disposal or deemed disposal of a capital asset that triggers a capital gains tax calculation under Australian tax law; examples include selling shares, crypto swaps, and gifting assets.

Cost base

The total amount paid to acquire an asset plus incidental costs such as brokerage and stamp duty, used to calculate your capital gain or loss on disposal.

CGT discount

A 50% reduction applied to capital gains on assets held for more than 12 months by Australian resident individuals and trusts, halving the taxable gain before it is included in assessable income.

Capital loss carry-forward

A net capital loss from one financial year that cannot offset ordinary income but is carried forward indefinitely to reduce capital gains in future years.

Franking credit

A tax credit attached to dividends paid by Australian companies that have already paid corporate tax at 30%, which shareholders can use to offset their personal tax liability or receive as a cash refund.

Financial year (Australia)

The 12-month period from 1 July to 30 June used as the basis for Australian income tax assessments and CGT calculations.

Disposal method (FIFO/LIFO)

The accounting method used to identify which specific parcel of shares is sold when you hold multiple parcels at different cost bases; FIFO sells the earliest-acquired parcel first, LIFO sells the most recently acquired.

Wash sale

A transaction where an investor sells an asset at a loss and immediately reacquires a substantially identical asset to manufacture a tax deduction; the ATO may deny the loss under Part IVA or TR 2008/1 if the dominant purpose is obtaining a tax benefit.