How to Sell Shares in Australia

Before you sell: 3 things to check first🔗

1. Are you selling for the right reason? Markets go up and down. Selling in a panic during a dip locks in a loss that might have recovered. Before you hit sell, ask whether anything has actually changed about why you bought, or whether you are just reacting to a red number. Deliberate selling (rebalancing, funding a goal, cutting a position that no longer fits) is completely valid. Just make sure it is a decision, not a reaction.

2. What is the capital gains tax impact? Selling shares is a CGT event in Australia. If you sell for more than you paid, you have made a capital gain and you will owe tax on it. Hold for 12 months or more and you may be eligible for the 50% CGT discount, which halves the taxable gain for individuals. Our guide to capital gains tax on shares is worth a read first.

3. What will brokerage cost you? Online brokers typically charge a flat $5 to $20 per trade. Registry-based sale services charge more, often a flat $120 or a percentage of the sale value. For a small holding, that can eat a meaningful chunk of your proceeds, so factor it in before you decide.

Do you have a broker (HIN) or an SRN? How to tell🔗

This is the most important question, because the answer decides which path you take. It comes down to two numbers.

• HIN (Holder Identification Number): starts with the letter X. Your shares are CHESS-sponsored, held through your broker. You sell on your broker's platform.
• SRN (Security Reference Number): starts with the letter I. Your shares are issuer-sponsored, held directly by a share registry such as Computershare or Link Market Services. You sell through the registry, or transfer to a broker first.

To find out which you have: log in to your broker and look for the holding (if it is there, you have a HIN); or check for a holding statement from a share registry with a number starting with I (that is an SRN). If you have never opened a broker account, you almost certainly have an SRN.

How to sell shares through an online broker, step by step🔗

If your shares are CHESS-sponsored under a HIN, selling is simple. Here is how it works on most Australian platforms, including CommSec, SelfWealth, Stake and Pearler.

1. Log in to your broker and open your portfolio.
2. Find your holding and click "Sell" (or "Trade") next to the stock.
3. Enter the quantity and order type (more on market versus limit below), and double-check the ASX ticker code.
4. Review the brokerage fee and confirm. Your broker shows the estimated fee before you commit. Read it, then confirm.
5. Wait for execution and settlement. Orders execute during ASX market hours, and settlement completes two business days later (T+2). The proceeds then sit in your broker cash account.

No broker yet? Our guide on how to buy shares in Australia covers setup, and you can compare platforms in how to choose an investing app.

How to sell issuer-sponsored shares without a broker (SRN holders)🔗

If your shares are issuer-sponsored (an SRN starting with I), you have two options.

Option A: use a one-off share sale service. Both Computershare (via Investor Trade) and Link Market Services offer share sale facilities for SRN holders, with no broker account needed. You log in or access your holding with your SRN and postcode, provide your Tax File Number and bank details, and the registry sells at the prevailing market price. Proceeds land in your bank account, usually within 3 to 10 business days. Computershare's Investor Trade charges $120 (incl. GST) for individuals on trades up to $5,000, then $120 plus 0.33% of the amount above that. It is available for holdings under $75,000 and requires two forms of Australian government-issued ID. Simple, but higher fees and no price control.

Option B: transfer to a broker first, then sell. For a larger holding it is often cheaper to open a broker account, transfer your shares from the registry to your broker (this moves them from issuer-sponsored to CHESS-sponsored), and then sell at standard brokerage rates. The transfer is typically free and takes around 3 to 5 business days. For a worked example using a real holding, see how to sell Telstra shares.

Ways to sell your shares, compared🔗

Market order vs limit order when selling🔗

When you place a sell order through a broker, you usually choose between two order types. A market order sells immediately at the best available price. Fast and simple, but the price is not guaranteed, and for a thinly traded stock the best available price might be lower than you would like. A limit order sets a minimum price; it only executes if the market reaches it, so you get more control, but it might not fill at all.

Practical tip: for large, liquid blue-chips (roughly the ASX top 50), a market order is usually fine, as the spread is tight. For smaller or less liquid stocks, a limit order protects you from a bad fill.

Settlement (T+2) and when you actually get your money🔗

ASX trades settle on T+2, meaning two business days after the trade date. Sell on a Monday and settlement is Wednesday (assuming no public holidays). Here is the typical timeline from trade to bank.

On the trade date the order executes. On T+2 settlement completes and the proceeds appear in your broker cash account. You then request a withdrawal, which most brokers process in 1 to 2 business days. All up, expect roughly 3 to 5 business days from trade to money in your bank. Do not plan around having the cash the next morning.

Tax when you sell: CGT, the 50% discount and records🔗

Selling shares triggers a CGT event. Your capital gain is the sale proceeds minus your cost base, and your cost base is the purchase price plus brokerage paid when you bought plus brokerage paid when you sell. Yes, brokerage counts on both sides, which the ATO confirms.

If you held for 12 months or more, individuals can apply the 50% CGT discount, so only half the gain is included in your taxable income. If you sell at a loss, that capital loss can offset capital gains elsewhere (not ordinary income), and it carries forward to future years. Keep records of your purchase date and price, buy-side brokerage, sale date and price, and sell-side brokerage, for at least five years. Your broker's transaction history is a good start, but download and save a copy. Our capital gains tax on shares guide has the full picture.

Selling inherited shares: cost base basics🔗

Inheriting shares does not make them tax-free. CGT still applies when you eventually sell, and the cost base depends on when the deceased originally acquired them.

• Acquired before 20 September 1985 (pre-CGT): your cost base is the market value on the date of death, which is generally favourable.
• Acquired on or after 20 September 1985: you generally inherit the deceased's original cost base and acquisition date (that date matters for the 12-month discount).
• Who pays: if the estate sells before distributing, the estate pays any CGT. If the shares are distributed to you first and you then sell, you pay it.

Inherited shares can get complicated quickly, especially across multiple parcels or long holding periods. Advice from a registered tax agent is genuinely worth it here.

Common mistakes when selling shares🔗

• Selling in a panic during a dip. Volatility is normal, and selling at the bottom locks in a loss that often recovers.
• Forgetting brokerage in your CGT cost base. Both the buy-side and sell-side brokerage count. Miss them and you overstate your gain.
• Not knowing your holding type before you try to sell. If the shares are not in your broker's app, they are probably issuer-sponsored. Check first.
• Selling just before the 12-month mark. Missing the 50% discount by a week or two can cost real money on a large gain.
• Withdrawing before settlement clears. The money is not yours to withdraw until T+2.

❓ Frequently asked questions🔗

Keep reading🔗

• How to buy shares in Australia
• How to sell Telstra shares
• Capital gains tax on shares in Australia
• How to choose a broker in Australia