Parcels and identification
Each time you buy shares in the same company you create a new parcel with its own cost and purchase date. When you sell part of a holding, your gain depends on which parcels you treat as sold. The calculator offers two methods:
- First in, first out (FIFO) – the oldest parcels are sold first. Simple and widely used where specific parcels can’t be identified.
- Specific parcels – minimise tax – picks the parcels that give the lowest taxable gain (losses first, then discounted gains, then short-term gains). Use this only if your records let you identify the parcels sold.
Worked example
Selling 600 shares out of two parcels
Parcel 1: 400 shares bought February 2021 for $12,020 including brokerage. Parcel 2: 500 shares bought September 2025 for $21,520. In April 2026, 600 shares are sold for $27,600 less $20 brokerage. Other taxable income: $90,000.
- FIFO: all 400 of parcel 1 (held over 12 months, discounted) plus 200 of parcel 2 (short-term). Net capital gain $3,769, estimated tax $1,206.
- Specific parcels: 500 from the 2025 parcel and 100 from the 2021 parcel. Net capital gain $2,259, estimated tax $723.
Records you need
Your broker or share registry provides most of what you need: purchase and sale dates, prices, brokerage, DRP allocations, and corporate actions such as splits, consolidations, returns of capital, demergers and takeovers. Keep these for at least 5 years after the end of the income year you sell – longer if you’re carrying forward a capital loss.
Shares sold after 1 July 2027
Listed shares have a readily ascertainable market value, so Treasury’s apportionment method isn’t available. For shares you hold on 1 July 2027 and sell later, the gain up to 30 June 2027 uses the closing price that day and keeps the 50% discount; the gain after that is indexed to CPI and subject to the 30% minimum tax. Enter the 30 June 2027 closing price in the calculator when your sale date is after 1 July 2027. How the changes work.
Frequently asked questions
Do I pay CGT on shares in Australia?
Yes, if you hold shares as an investor and sell them for more than their cost base. The gain is added to your taxable income; if you held the parcel for at least 12 months you only include 50% of it. If you trade shares as a business, profits are ordinary income instead.
Which shares did I sell – FIFO or specific parcels?
Each parcel is a separate CGT asset. If your records (e.g. CHESS or issuer-sponsored statements) identify which parcel you sold, you can choose. The ATO’s own example shows an investor choosing to sell the higher-cost parcel to realise a loss. If you can’t identify parcels, first-in-first-out is the accepted default.
Is brokerage included in the cost base?
Yes. Brokerage on purchase is added to the parcel’s cost, and brokerage on sale is an incidental cost of disposal. The calculator spreads sale brokerage across the parcels sold.
How do dividend reinvestment plans affect CGT?
Each DRP allocation is a new parcel acquired on the allocation date, with a cost equal to the dividend reinvested. Add each one as a parcel.
What about ETF capital gains distributions?
Capital gains distributed by ETFs and managed funds are reported in your tax return from the annual tax statement, and AMIT cost base adjustments change the cost base of your units. This calculator covers gains when you sell units.
Can I sell shares at a loss and buy them back?
Be careful: the ATO treats “wash sales” – selling to realise a loss and quickly buying back the same shares – as potentially subject to the general anti-avoidance rules (Taxation Ruling TR 2008/1).
References
Every figure on this page was checked against these primary sources on 16 October 2026.
General information only – not financial or tax advice. See our disclaimer. Spotted an error? Email [email protected].