Investing in the stock market can be a good way to build wealth over time. However, while most investors focus on stock picks, dividends, or portfolio performance, record-keeping tends to get overlooked. Things like ignoring corporate actions that affect the cost base, forgetting to include foreign income and tax paid, not tracking reinvested dividends (especially in DRPs), and throwing out old paper statements (kept for 5 years post-sale) can mean the difference between a properly lodged tax return and a poor one (where you could be missing out on offsets).
So, how do investors keep a record of all the ins and outs of investing? Record-keeping with the right tools helps investors stay organised, accurately track their performance, and ensure they comply with Australian Taxation Office (ATO) requirements. Good record-keeping can be especially beneficial if investments are spread over multiple brokerage platforms.
In this article, we’ll take a look at the records needed, why they matter, and how to manage them efficiently.
Why record-keeping matters
Whether you’re a casual investor or a seasoned trader, keeping clear, accurate records of your investments is important for:
Capital gains tax (CGT) reporting
Dividend income tracking
Tax deductions and offsets
Performance evaluation
Audit protection
What records should you keep?
It's important to note that the ATO recommends keeping investment records for at least five years after the purchase or sale of an asset or receipt of income. The ATO needs to know specifics when it comes to reporting the buying or selling of shares, dividend-related income, and other deductible expenses. Below is a checklist of the important information every stock market investor needs to keep.
1. Buy and sell transactions
Keep a record of every share you buy or sell, as it's crucial in calculating any capital gains or losses when shares are sold. Things to keep a record of include:
Date of purchase and date of sale
Name of the company (stock)
Quantity of shares owned or sold or both
Purchase and sale price
Brokerage and associated fees
Trade confirmations and contract notes
2. Dividend statements
Dividends are assessable income and need to be reported when lodging your tax return. See our previous article on dividends and the difference between franked and unfranked credits. It's important to keep all dividend statements sent from companies or brokers, showing:
Dividend amount
Franking credits or foreign tax paid
Payment dates
3. Tax reports from your broker
Most Australian brokers offer end-of-financial-year (EOFY) tax reports, which can summarise:
Capital gains/losses
Dividend income
Foreign income
Deductions (fees, interest)
It's important to note that while these generated reports should be accurate, investors shouldn't rely solely on these and should cross-reference with their own records for accuracy. To generate statements for the financial year or any other date range required, open the Tiger Trade app > Portfolio > Statements > Customise > select your date range.
4. Deductible expenses
It's not just about CGT or dividend income. Investors may be able to claim a deduction for certain investment-related expenses, which may include:
Platform or subscription fees for market data
Financial advice related to ongoing investment management
Interest on margin loans
Investors should keep invoices, bank statements, and receipts as supporting documents and provide them to their accountants when lodging their tax returns. It's important to note that these items listed above need to show that they are costs that are associated with wealth generation purposes. If you're not sure, check with the ATO or your financial advisor.
5. Corporate actions and adjustments
These may affect your cost base, which directly impacts CGT calculations and can include:
Share splits or consolidations
Bonus issues or rights offers
Company takeovers or mergers
Return of capital or capital reconstructions
Tools for easy record-keeping
Record-keeping is about ensuring you have the right tools to report your CGT, dividend earnings and any other investment information required by the ATO. However, while spreadsheets are important (as mentioned in previous articles and below), there are also other tools that an investor requires and perhaps hasn't thought of.
Spreadsheets: While this is manual work, it is a great way to track purchases, sales, and dividends as they happen.
Portfolio tracking apps: Apps like Sharesight and Navexa help investors consolidate portfolios, especially if you have several investments spread over different online brokerage apps. Tiger Trade clients have access to Sharesight's portfolio tracking platform, where they can link their accounts directly to Sharesight and prepare reports on their investments.
Cloud storage: Save PDFs of statements and contract notes securely on Google Drive, iCloud, Dropbox or any other trusted cloud storage service. Having these statements downloaded and at your disposal will make reporting more efficient if they are required.
Broker platforms: Most brokers archive trade confirmations and statements, but don’t assume they’ll store them forever. Regularly downloading copies of statements ensures you have all your data on hand.
What your accountant will need at tax time
Make tax time easier by providing your accountant with the following information when lodging your tax return:
A summary of buys/sells and capital gains
Dividend income breakdown with franking credits
A list of deductible investment expenses
Copies of year-end broker reports
It can be a tedious task to keep track of everything, especially upon initial set-up. However, the more organised your records are, the smoother your tax return process will be.
Keeping clean and comprehensive records of your investments is a must for all investors. Not only will it reduce stress at tax time, but it can also ensure investors don’t miss out on tax deductions or overpay on capital gains. If you need assistance with finding out what you need to report, reach out to a qualified financial adviser or tax agent whom you can talk to regarding your personal financial circumstances.
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