Investor guide · 9 min · Reviewed 2026-09-02
Tax Loss Harvesting in Australia
Australian investors may realise capital losses to offset capital gains, with attention to the CGT discount on eligible long-term gains and ATO views on artificial loss schemes. This guide is educational framing for ASX investors researching the idea - not a lodgement manual.
Capital losses in an Australian context
If you dispose of shares or ETFs for less than their cost base, you may realise a capital loss that can reduce capital gains in the same income year or be carried forward. Cost base adjustments, brokerage, and corporate actions all affect the calculation - keep broker records.
CGT discount interaction
Eligible individuals may apply a CGT discount on gains from assets held beyond a threshold period. Losses and discounts interact in a prescribed order on the return. Harvesting a loss can still matter when you have large discounted or non-discounted gains - but the spreadsheet order matters.
Artificial loss schemes
The ATO has long warned about wash-sale style arrangements where the dominant purpose is a tax loss without a genuine change in economic exposure. Selling and immediately repurchasing the same parcel can attract attention. Economic substance and documentation matter.
Use StockWatch next
Open the Australia market hub for ASX context, the global harvesting and CGT overview guides for the shared vocabulary, and the wash-sale guide for repurchase caution. A dedicated Australia tax desk is not on StockWatch yet - use official ATO materials for lodgement.
Simple illustration
Educational numbers only - not your return.
You crystallise a gain on one ASX holding and sell another ETF below cost before 30 June. The loss may reduce net capital gains for that income year after applying the rules and any discount - subject to ATO guidance and your full return. Confirm with a registered tax agent if unsure.
Interactive checklist
Harvest readiness helper
Educational tool only - not tax, legal, or investment advice.
If the shares sit in a tax-advantaged wrapper, year-end loss harvesting usually does not work the way taxable-brokerage guides describe. Open the accounts guide and your country desk instead.
Enter gains and a potential loss to see a rough net picture (not your tax bill).
Common mistakes
- Ignoring cost-base adjustments and claiming a neat “market price minus buy price” loss.
- Repurchasing the identical parcel immediately in a way that looks artificial.
- Forgetting that superannuation wrappers have different tax dynamics than an individual taxable account.
- Using U.S. Form 1099 habits on an Australian lodgement.
Continue on StockWatch
Guide FAQ
Short answers for discovery.
Is there a U.S.-style wash-sale statute in Australia?
Australia’s framework and ATO guidance differ. Do not copy U.S. 30-day folklore blindly; read current ATO material on share trading and losses.
Does harvesting help inside super?
Superannuation tax treatment is different from an individual’s taxable share account. Do not assume the same harvesting playbook applies.
Can StockWatch lodge my return?
No. Educational content only.