Syadyppah, I'd urge you to speak with a tax adviser.e.g. If you...

Syadyppah, I'd urge you to speak with a tax adviser.

e.g. If you buy 1000 shares at $1.00 for $1,000, the cost base of each share is $1.00. If you then sell 500 shares for $2.00 you have a capital gain of $500 (consideration of $1,000 (500 x $2) less cost base of $500 (500 x $1)). Your remaining 500 shares would still have a cost base of $1.00 each being $500. They may be free carried in the sense your investment has been recouped. But the ATO is not stupid enough to miss out on capital gains tax in this instance.

If you are a professional trader and trade shares on a revenue account this may be different but as an investor you would pay capital gains. You would then of course have to pass the business tests to be considered a trader.