Things to know
Complete this section if you incurred expenses in earning any income included in the Dividends section. You must also complete this section if you had a listed investment company (LIC) capital gain amount in your dividends.
Your dividend expenses may include:
- management fees and fees for investment advice relating to changes in the mix of your investments
- interest charged on money borrowed to purchase shares or similar investments
- costs relating to managing your investments, such as travel and buying specialist investment journals or subscriptions.
You and your shares – deductions from dividend income provides more information on claiming deductions for expenses incurred earning income from shares.
If you borrowed money to purchase assets for both private use and income-producing investments, you can only claim the portion of the interest expenses relating to the income-producing investments.
Interest on investments under a capital protected borrowing may not be fully deductible. Capital protected products and borrowings provides more information on these investments and claiming a deduction.
You can claim part of the decline in value of your computer based on the percentage of your total computer use that related to managing your interest-earning investments, shares or similar securities. You can only claim part of the decline in value related to managing those investments once, in either Interest deductions or Dividend deductions. Guide to depreciating assets provides more information about claiming a deduction for the decline in value of your computer.
If you were an Australian resident when a LIC paid you a dividend and the dividend included a LIC capital gain amount, you can claim a deduction of 50% of the LIC capital gain amount. The LIC capital gain amount will be shown separately on your dividend statement.
Deductions for some expenses, such as interest and borrowing costs, may be affected by the thin capitalisation rules if they relate to:
- certain overseas investments or
- investments in Australia if you were a foreign resident.
These rules may apply if the total of your debt deductions and those of your associates are over $2 million for 2023–24. Thin capitalisation provides more information about how these rules apply.
Don’t show at this section
Don’t show the following expenses at this section:
- Any expenses incurred in earning trust and partnership distributions, go to Partnerships or Trusts
- Expenses incurred in earning foreign source dividends, go to Other foreign income or Other deductions
- Expenses you were charged for drawing up an investment plan unless you were carrying on an investment business, in which case you would claim any expenses at Business income or losses.
Completing this section
You will need your dividend statements showing any LIC capital gain amount. Show dividends received from a LIC in the Dividends section.
We pre-fill your tax return with:
- dividend deductions information you uploaded from myDeductions
- LIC capital gain deduction amount provided to us.
Check them and add any other dividend deductions that have not pre-filled.
To personalise your return to show dividend deductions, at Personalise return, select:
- You had deductions you want to claim
- Gifts, donations, interest, dividends, and the cost of managing your tax affairs
To show your dividend deductions, at Prepare return select 'Add/Edit' at the Deductions banner.
At the Dividend deductions banner:
- For each dividend deduction expense not pre-filled in your tax return, select Add and enter information into the corresponding fields.
Joint accounts
If you had joint share investments or similar investments, only show your share of the joint expenses. If you held the investment equally with one other person, this will be half. Keep a record of how you worked out your part if you didn’t share the expenses equally.
The Depreciation and capital allowances tool can help you work out any decline in value deduction. It can also work out any deductible balancing adjustment when you stop holding a depreciating asset. Access this tool in the Deductions section.
Fields from this tool can't be adjusted in myTax. To make any adjustments, or to add new assets to the tool, select the 'Use the depreciation and capital allowances tool' link. - Select Save.
- Select Save and continue when you have completed the Deductions section.