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MQ1863(Newbie)Newbie
3 Dec 2024

Good day,


I would like to inquire about the tax implications of purchasing US stocks using an online trading platform. Specifically, I plan to fund my IBKR trading account with money from Australia and purchase small shares of US stocks.


I do not intend to sell these stocks in the near future, but instead, I plan to hold them for at least 5 years. Given that I do not anticipate profiting from these shares in the short term, do I need to declare them to the ATO?


Additionally, will I need to declare capital gains tax, even though I have no plans to sell the shares during this period? Will I also need to declare to the ATO if I receive dividends from my stock?


I found a related forum titled "What are the tax implications of buying US shares?" (link: https://community.ato.gov.au/s/question/a0J9s0000001CWxEAM/p00024474), but it did not address whether simply purchasing the shares requires declaration.


Thank you for your assistance.

2,276 views
3 replies
2,276 views
3 replies

Most helpful response

Most helpful reply

knaresbro(Devotee)Devotee
3 Dec 2024

Purchasing or holding the shares isn't reportable. Dividends are reported and foreign withholding tax is also included in your ATO return. You will probably complete a W8-BEN form for your broker to reduce the amount of tax withheld from any dividendd.

All replies

NikkiATO(Community Moderator)Community Moderator
20 May 2026

Hi @MQ1863,


You don’t need to declare anything just for buying or holding shares, but there are two separate points to be clear on:

Dividends are different.

If you receive dividends from the US shares, you need to include them in your tax return for the year you receive them, even if you haven’t sold the shares.


In simple terms:

  • Buy shares = nothing to declare.
  • Hold shares = nothing to declare.
  • Receive dividends = declare as income.
  • Sell shares = work out CGT.

The key is that tax consequences arise from income (dividends) or disposal (selling) - not from simply owning the shares.

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Do I need to declare US stocks purchased through an online trading platform to the ATO? | ATO Community