Contract note: date for CGT calculation

transit · 3 February 2007

Hi all, just a quick question re contract notes sent by online broker (comsec) through email in a PDF file.

I have 2 dates on the contract note. One date is the date i purchased the stock called "as at date" (11/1/07) and then i have a another date called "settlement date" (16/1/07). I'm guessing this is the T+3 date.

Which date do i record in my spreadsheet for my accountant? Do i need to put both in or is only one of them relevant for CGT calculations?

Bomba · 3 February 2007

Settlement date is the date your accountant will be interested in. It's essentially the date money changes hands.

jkool · 4 February 2007

Yes T+3 is the day the money change the hands, it is therefore also the settlement date = date for determining the CGT obligations.

markrmau · 4 February 2007

No, I'm pretty sure it is the date of actual purchase or disposal, not the settlement date.

This will only matter for shares traded in the last three days of the fin year. T+3 doesn't mean the CGT goes into the next fin year.

http://www.ato.gov.au/content/downloads/NAT2632-06.pdf

You must keep records setting out in English:
■ the date you acquired the asset
■ any amounts which will form part of the cost base of the
asset, and
■ the date you dispose of the asset and the capital
proceeds from the sale.

EasternGrey1 · 4 February 2007

I always record it as the date of purchase, not date of settlement, and the ATO hasn't complained. It's logical, because the date of purchase (or sale) is the date from which your fortunes are tied to (or untied from) the stock.

Bomba · 4 February 2007

now im confused :lol

Staybaker · 5 February 2007

The important date is the date of the contract to buy or sell. For stocks, it's the date on which you make the trade (and the date shown on the contract note). For a real estate transaction, it's the date you sign the contract to buy or sell. The date of settlement follows sometime later (three days for stocks, a month or three for real estate), and is irrelevant for calculating CGT holding periods, etcetera.

Cheers, Staybaker.

jkool · 5 February 2007

I stand corrected (had to go back and dig out the paperwork from last FY).

The date of the contract was used for CGT on my last tax return.

Sorry to add to confusion.

Contract note: date for CGT calculation

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