Australian stockmarket data

[Springbok]

Is there perhaps anyone in here who uses charting software like Metastock to track the prices of Australian shares?

If so - I'd like to know which data vendor in Australia I can use and what the monthly subscription for end-of-day data would be.

Thanks!

Charl

[Bob]

The four major banks all operate share trading facilities.

Personally, I find the Commonowealth Bank the cheapest and all the folks that I know use their data.

You need to log onto CommSec (Commonwealth Securities) and organise a brochure to be sent, showing the procedure involved AND preferably organise a CDIA (Commonwealth Direct Investment Account) account to be opened up at the same time.

You can put your investment capital in the CDIA account (with a minimum of $5,000 initially) and operate out of that account to secure the cheapest trading prices available . . . . $19.95 on share trades up to $10,000.

If you trade more than 15 times per quarter, CommSec will let you have their software for free (which can be bought for $79 per month, otherwise) with the floor prices updated every 15 minutes on all Australian stocks.

I don't know if you have "imputation" in Sth Africa.

Basically, if an Australian company listed on the ASX (Aust'n Stock Exchange) pays the company tax (30% tax rate) on its profits and pays you the dividends out of the remaining 70%, you don't pay income tax on those dividends (assuming you are only paying 30% income tax on personal income under $70,000 a year)

If investing in mining shares, and therefore going more for capital growth than dividends, you pay CGT (Capital Gains Tax) at your income tax rate.

If you hold the shares longer than a year, the CGT is halved on all capital growth with any particular stock.

Edited November 15, 2006 by Bob

[Springbok]

The four major banks all operate share trading facilities.

Personally, I find the Commonowealth Bank the cheapest and all the folks that I know use their data.

I don't know if you have "imputation" in Sth Africa.

Basically, if an Australian company listed on the ASX (Aust'n Stock Exchange) pays the company tax (30% tax rate) on its profits and pays you the dividends out of the remaining 70%, you don't pay income tax on those dividends (assuming you are only paying 30% income tax on personal income under $70,000 a year)

If investing in mining shares, and therefore going more for capital growth than dividends, you pay CGT (Capital Gains Tax) at your income tax rate.

If you hold the shares longer than a year, the CGT is halved on all capital growth with any particular stock.

Thanks Bob, I'll have a look at CommSec!

Here in S.A. the dividends are also paid from after-tax profits.

When selling shares, there are no clear guidelines that the taxman can apply in determining whether or not you are a share-dealer. The primary indicator is thus your intention, which can be demonstrated in the following manner:

If you have held your shares for a long period of time (e.g. more than 5 years), demonstrating that your intention is to earn dividend income and long-term capital gains, you are unlikely to be classified as a share-dealer if you have made one or two minor adjustments to your portfolio. Here you will pay CGT on the profits.

On the other hand, if you are constantly moving in and out of the market conducting numerous trades, or engaging in clearly speculative activity such as short selling, the likelihood of being classified as a share-dealer is far stronger. And you will be taxed at your income tax rate.

[Bob]

Australian Tax Law is such that if you are purely speculative in your share trading and only interested in quick capital growth returns, then you're taxed the full CGT on your increase on that particular stock.

If, however, you hold the stock for a while and demonstrate that you are not a "raider" only going for quick increase, then only half the CGT is paid.

A year of holding the stock is sufficent, in the eyes of the Australian Tax Office (A.T.O.), to show that you held the stock not just purely for quick speculative return.

Likewise, with dividends, if you hold stock before it goes ex-dividend and are, therefore, entitled to a dividend, this is granted without income tax being paid, if you demonstrate to the A.T.O. that you are not purely stripping dividends.

Holding shares, which have paid dividends, longer than 45 days, shows the A.T.O. that you are not purely stripping the stock of its dividend before selling, and the dividend comes tax-free.

Edited November 15, 2006 by Bob

[Pieter]

Hi Bob,

What about profit on foreign currency trading? Will you pay normal income tax? Because the transaction can get very expensive if you leave them open for more than a few days, I try to be in and out of the market in the same day. So, it's very short term. I pay normal income tax on my profits here in South Africa.

Pieter