I've been spending hours trying to figure out how to do this and finally stumbled your video. Wonder I couldn't find this very easy to understand info from ATO itself. Great video.
Thanks Dan! You are a lifesaver! I had put off doing my income tax as i didn't know how to fill in the fields for ETF distributions (first fin. year buying ETFs and receiving dividends for me). How does the lay person even find this information? I imagine you are in the field of tax so you knew how to do this through your own references.
Thanks for watching and for your question. I do have have a tax background so the information comes a little easier for me. There are ATO links in my video description that can help share more information and it is a good start. Please let me know if there are any other areas that caused you some challenges and I can look at making future videos about them!
Dan thank you so much for the video, yes I did my own tax return and followed your steps. Invested very little amount so wasn’t happy to see the agent for that amount 😬 subscribed now 👏🏻
Hi. Thanks for watching. Unfortunately not but will consider creating one soon. A foreign etf would be all foreign income, foreign tax credit at box 20 and capital gains at box 18.
@Money with Dan, firstly, thank you for your excellent videos - they're incredibly helpful and given in a manner that makes them so much easier to take on board - a real credit to you. My question pertains to the 18A/18H section you touch on at the 3m25s mark. I feel silly asking this, but are you certain that the '12mth+/discounted' Net CGT as shown in 18A is due to the investor holding the ETF for 12mths+, as my understanding was this is where the ETF itself (obviously the managed fund behind it) is applying the 'discounted' CGT as it had disposed of assets which met this rule. You mention that the trust passes these on to the investor to pay these at their relevant rate i.e if they've held the ETF for 12mths+ it's at the discounted rate, if not - will be same as 18H i.e no discount. So is the discount for how long the investor has held the ETF or how long the ETF held the assets it disposed of? Apologies if that is clear as mud. Thank you in advance :-)
Hi @N.Granger. Thanks for watching and supporting my channel! Great question! I sorry the answer is quite technical but in summary the tax rules I mentioned in this video apply to AMIT (Attribution managed investment trusts) which are most of the large ETFs like VAS. The AMIT rules ensure that, for tax purposes, amounts attributed to you by the trust, keep their tax character; flow through to you, and are treated as if you had received the amount directly in your own right. In relation to capital gains, these rules mean you will treat the capital gains component of your trust income as being a capital gain that you made. It also requires capital gains to be grossed up for the purposes of applying the 50% discount and capital losses from other investments. If you were not eligible for the 50% Discount, then the amount at 18H is what you would be taxed at (excluding an other capital gains events from other investments) and not what the Fund tells you to put at label 18A on their tax summary. It can get quite technical but on your tax statement from your Fund you should see the words "AMIT" to know if these rules apply. If you want more detail, then the ATO explains it further here: www.ato.gov.au/Individuals/Tax-return/2022/In-detail/Publications/personal-investors-guide-to-capital-gains-tax-2022/?page=5#Part_C__Distributions_from_managed_funds I hope this clarifies. Dan
Excellent video (nice voice too) - I was tearing my hair out not seeing the numbers like 13U - but as you pointed out they are on the left of each sub-section that's sweet ! Now I just have to ring the ATO to ask how the hell I work out Capital Gains Tax Discount (total for multiple ETFs) in the un-numbered total field at the bottom of the Capital Gains section (for CG>$10K) - I guessed Gross CG minus Net CG but dunno so I'll call the ATO - Help !
Thanks so much much for watching. Glad it helps. I created another video about capital gains tax that might help that you can find here How Capital Gains Tax is Calculated in Australia ua-cam.com/video/speLrYoEsew/v-deo.html
Thanks Dan for the very useful video! I have EFTs myself and found reassurance in your video that I was on the right track to populate my managed fund section of the Tax Return (which was already pre-filled). As I didn't hold my ETF for more then 12 months yet in FY24, I removed the CGT 50% discount. That was the first tricky part. Now, the last challenging bit to understand is the AMIT cost base adjustment. I didn't understand whether I should include this in my Tax Return. I haven't sold any ETF so far. Where is the AMIT adjustment playing a role?
Thanks for the question. Glad the video helped. AMIT cost base adjustments are something to keep record of each year and will not impact the tax return until you sell some units or if your cost base drops below zero (very rare). When that happens you will have a CGT event and the AMIT will either increase or decrease your cost base, impacting the amount of the net capital gain to include in your tax return. It’s easy to lose track of these AMIT cost base adjustments and I use Sharesight to help me do that each year since I usually hold for the long term personally. It is also good at calculating the tax return items too. Best wishes!
First time watching your video. Thanks for sharing. Found it very useful. Haven’t invested in ETFs yet as I was worried about how to complete my tax return. Keep up the great work!
Great video. Believe it or not, I work in a senior position in finance and have never managed to complete a tax return correctly. I sold all of my shares as it all got too much.
You should only put details from annual tax statement for etf and managed trusts. This is because the tax components are not known until the end of the year.
3 місяці тому+1
Thanks Dan, great video. One question, I received cash dividends from my ETF's, which are shown within my statements in Part B 'cash distribution' - are these required to be included anywhere or are they already covered within the figures provided in Part A?
Thanks for watching. Part A should cover these for inclusion in tax return for individuals. Part B is more detail that is useful for accountants reconciling cash payments received to distribution statement.
Great video mate, was confused whether I had to enter dividend again under the dividend section or if it was included in this managed fund section, i assume it's the latter like you said in the video?
Hi Dan, fantastic videos! It is my first year holding ETFs and inputting this information in my tax return. This is all very helpful for the ETFs that I've bought and kept. However, I sold some ETFs I had in Spaceship as I wanted to consolidate and ended up with a capital loss for those. I'm not sure where to go about entering those details? Would you have any advice, please?
I’m so glad to hear it’s helping. Capital losses can be used to offset current capital losses or can be carried forward to use against future capital gains. I talk a bit more about CGT in general in this video here: ua-cam.com/video/speLrYoEsew/v-deo.html
this is very helpful, thank you very much. what confuses me is when i have 10 shares for example, and the etf sells shares as per their business as usual operations, i still have the exact same 10 shares. but then i still get capital gains from the sales the etf made during the year. which i wouldn't know how many shares they sold, or if they held the shares for more than 12 months (though this second point is likely that they held the sold shares for 12 months). how would the discount even apply to me if they didn't sell my shares-in your video you mention that you held the assets for more than 12 months but how do you know the shares they sold are your shares that you've had for over 12 months and not the just recently bought ones? do i still enter in the capital gains numbers in 18A/18H? if so, would it just be the same numbers as per your video? ie include the discount in 18A and use exactly the same number as the statement for 18A and 18H. apologies if you have answered the question in a different way and i still don't get it. or if my question is worded poorly. thank you!
I’m glad it is helping. I created another video where I explain this a bit more here : ETF Capital Gains in MyGov: How to Add Them Without Pre-Fill | 2023 Australian Tax Return ua-cam.com/video/Ze6KY4tcSiU/v-deo.html Essentially, the ETF is a Trust, not a company, which means it does not pay tax on capital gains it makes selling shares and instead distributed it to you to pay the tax at your rates. The tax statement tells you if it is a discount gain or not and this video talks more about how to treat it.
Thanks so much! Where should i enter the interest paid to the bank during the year, if the ETF was purchased using borrowed money. Should i include it in Dividend deduction or 'Other deduction'
Thanks for watching! Yes you should enter it at the dividend deduction section of MyTax. At Personalise return, select: You had deductions you want to claim Gifts, donations, interest, dividends, and the cost of managing your tax affairs To show your interest deductions, at Prepare return select 'Add/Edit' at the Deductions banner. At the Interest deductions banner: For each interest deduction expense, select Add and enter information into the corresponding fields. Hope this helps!
Excellent, ETF tax return always too complicated. So if I wait for the pre-filled in MyTax it will correctly fill in Income & Credit/Tax withheld I don't have to do anything like in this video ?
Hi Dan, great video. When I look at the tax statement report it seems to show the tax guide as an aggregate. I cannot see a tax guide for the 2 etfs I own. What iam asking is if you have 2 etfs do you need to do the distribution section once or twice.
Hi. Thanks for watching. If you have two the yes you need to complete to worksheets and MyGov will consolidate them for you. If you use Sharesight, it will create a consolidated tax statement for you so you only need to fill it in once. I have a link in the description Sharesight if that interests you. Thanks
Hi Dan, great video. Two questions: 1)Is there a way to know in advance, the tax liability that a certain ETF distribution has attracted? I mean, as soon as it has been paid and before tax time? Looking for the best way to calculate my total tax position in advance. 2) What's the best way to compare the after tax returns for each ETF/stock/LiC? Will be awesome if you could videos on these topics if you haven't already. Cheers Alan
Thanks for watching and for your suggestions. I recommend using Sharesight, an online investment tracking tool, to track after tax performance. It has some handy reports that be used to estimate after tax performance but only the final tax statement issued by the etf each year will be 100% accurate which is typically issued in August/September if Australian domiciled. You can find a link to Sharesight here: www.sharesight.com/moneywithdan/ where you sign up free for the first 10 holdings to trial it out. (BONUS When you signup using this link, the first 4 months of subscription are free if you choose to upgrade to advanced plan and I may get a small my commission at no extra cost to you, so we both win!)
Great video, Thank you! A question: Futu moomoo gave me one unit apple share as gift for opening account with FUTU and I sold it. Futu did't provide tax statement, How I should report this sell one unit apple to ATO on my tax return?
It sounds like it is a capital gain or loss from selling units in a managed fund instead of a distributed capital gain from FUTU. This would still be a capital gains in your tax return.
THANKYOU - I was in tears and regretting ever buying shares till seing this video. Am I right in thinking that I report individual shares under dividends only and ETFs under managed funds only (I have a mixture of both under my sharsies account; this seems to be in contrast with my Raiz account which needed me to report under both)
Thanks Brit. I’m so glad this video has helped. Normally if you bought equities with a traditional broker you would be correct about dividends from individual shares being reported separately in the tax return compared to ETFs. It sounds right that investments bought with Raiz or Sharesies would be different as I understand there is a custodian (I.e held on trust for your benefit) involved so it could be considered trust income for tax return and not for others depending on all the facts. Raiz explains it more here: raizinvest.com.au/blog/what-is-a-custodian-and-what-do-they-mean-for-raiz-users/ Minor structure differences between Raiz and Sharesies could lead to different reporting requirement for tax which is confusing. I think I should make a video about this as lot of people use Raiz instead of a traditional broker. Best wishes!
Thank you so much for this video Dan. I have a question: my shares tax income statement doesn't provide info for: "13Y - Total other deductions relating to non-primary production" or "24V. Total other income - category 4." - does that mean it doesn't apply to me and I can submit my form without this info?
Thanks for watching. Are you sure you are referring to trust distribution tax statement? This video if for ETFs which are trusts. I only ask as you said “Shares” which normally refers to listed companies which would normally pay dividends and be declared elsewhere in the tax return. I note that most ETFs or Trusts are unlikely to have issued their annual tax summaries for trust distributions yet and they typically are issued in August or later.
Hi Dan! This is such a helpful video - thank you! I'm wondering what to do if I wasn't given one of these letters for the EFT? E.g. SPY owned by SPDR doesn't give out AMMA tax statements. I'm not sure how to best declare the distributions I've received. Do you have any advice for this scenario?
Hi. Thanks for watching. According to the tax instructions from State Street, they do issue AMMA - see the announcement here www.ssga.com/library-content/pdfs/etf/au/spdr-etf-tax-guide.pdf They may be late or you may need to log into the investor centre to obtain you copy.
Hi Dan. I got an ETF & it has pre filled mytax which is great. However confusing part is - as per the end of year tax statement from ETF cash distribution is $111 & pre filled income in mytax is $195. I have checked that numbers are correctly filled in my tax. Am I missing something here or $195 is the correct income number even though cash distribution is $111? Thank you.
It sounds like it could be correct as it came from prefill, but is hard to say without looking at tax statement. Having a difference between taxable income and cash payments with ETFs is common. For example, if your ETF distributes a lot of franked income then it will mean taxable income is higher than cash received as the franking credit will gross up your taxable income while the franking credit will reduce tax owing, despite higher taxable income. Sometime it works the other way where your taxable income is less than cash distribution. For example Capital gain paid in cash is higher because taxable income is lower due to CGT discount. It depends on type of income the trust is distributing that year and its tax treatment and tax rules applicable to the owner. Best wishes.
@MoneywithDan Thanks Dan for reply. I guess it is safe to assume that numbers that mytax has calculated are correct based on correctly generated pre filled data from annual statement.
Thank you so much for this video. I followed your steps but i am getting an message when I complete the capital gains or losses "Unless the carry forward capital loss is entirely due to capital losses from collectables and none of the net capital gain includes a collectable gain, you will need to review your calculations." I have no idea what this means? What I am not sure of is I have three managed funds for my kids very small amounts e.g. $30 each and I have ETF for myself and I also purchased some shares which I sold. When I enter the information into the capital gains field then also complete the capital gains and losses field I get this message. I have included the total of all net capital gains the total of net capital gain and the net capital loss carried forward to later income years. is this correct?
Thanks for watching. Did you select asset type as “collectibles” by mistake? When using the CGT record keeping tool? Collectibles are a specific type of asset (artwork, jewellery etc) where capital losses can’t be carried forward. Try going back to that section and changing asset type to “Australian units in unit trust” or whatever is relevant and definitely not collectibles. Best of luck.
Hi, Thanks for your video. It is great. I'm having two questions 1. I look at my share of income (it includes 13U+13C and foriegn income), but I am wondering why it is not equal to the total amount of distributions I received? Isn't the distribution the only taxable income in ETFs? 2. I saw my distrubutions were recorded in my capital gain section. So my total taxable income is [my share of income (as above) + capital gain income. ]. Feel my distributions being counted twice for income tax. Thanks a lot for answering my Q.
Hi Feng. thanks for watching! 1. taxable income for trust ps is often not equal to cash distribution paid for many reasons. Sometimes it’s less, sometimes more. It’s usually impacted by tax offsets, capital returns and franking credits. Section B of your tax tax statements shows where the difference between cash payment and tax distribution comes from line by line. 2. if distributed capital gains is recorded by prefill in capital gains sections then it is recorded at right section. if you enter capital gains using the worksheet method I showed (before prefill) then it would be double counting) hope this helps
@@MoneywithDan so my etf distributions are counted in capital gains then what's " the share of income less capital gains 13U"? Is that the money my ETF company made but I don't receive? But I still have to pay tax? Thanks
@@fehhh2253 share of income less capital gains are mostly dividend income or distributions from other listed trust. Most of this income is paid to you, except franking credits which is part of taxable income and you get the franking credit to offset tax.
@@MoneywithDan I see. Then what's the capital gain on my ETF report as I did not sell any units I wonder where this capital gain came from. I assumed that is the capital gains happened within the ETF? Thank you
Hi Dan Thank you for the insightful video. Just have a few questions in lodging tax returns. do we have to wait for AMMA tax statements (aug - sept) for ETFs before we can lodge or can we just use the Sharesight? Also if i hold multiple etfs do we receive the AMMA statements from each ETF issuers or does the broker provide this? I use Stake. Thank you in advance. P.s. beginner investor on ETFs, just this month
Thanks for watching👍. It is best to wait for tax statements as they contain lots of detail that may not be in the Sharesight income report. However, I note that Sharesight issues their own tax statements for all your investments entered in one consolidated tax statement which is a big advantage of using Sharesight. However Sharesight tax statements are usually ready in Sep after most big ETFs issue their tax statements. It is best to wait for this from Sharesight as it it is much easier to complete your tax return using this. The reason is that if you have multiple etfs, than yes, each etf will issue a seperate tax statement if they paid you a distribution. If you can’t wait for Sharesight to lodge then you will need to consolidate the tax statements in your tax return your self which can be a lot of work.
Thank you so much Dan for a very detailed explanation! Really helps to understand it more better. Appreciate it. Currently watching your other videos! 👍
@@MoneywithDan Hi Dan Back here at tax time. May i ask these questions about tax return. 1. I run sharesight report and they included my first etf distributions, ex date 3 july, pay date 13/07 2023 income in 2022-2023 FY, which i think should be in 2023-24 FY since it was paid after july 2023. 2. Sharesight is already showing my consolidated distributions (usually ready in sept) which i believe will be entered in MYGOV. however there is a button “confirm distributions”. Does this mean i just need to wait for my AMMT statements to confirm? Or will this be comfirmed by sharesight once ready (sept). 3. Does ATO pre-fill ETF distributions? Really would appreciate your help on this. 😊
@@RenceBsa hi. Let me see: 1. Sharesight will issue their own tax distribution statement that consolidates for all ETFs you have entered into Sharesight in early Sep. I don’t think this tax report for FY23 is final yet. It should be accurate if all transactions are recorded in Sharesight. 2. The “Confirm” button for distributions is a feature to confirm the amount Sharesight calculated as a distribution agrees to the amount you were actually paid in your bank. If the amount agrees then that is when you should check this as confirmed. Sometimes, there are mistakes in the distribution, which are because some purchases are not recorded correctly. 3. The ATO pre-fill will eventually include etf distributions but usually not in July like salary and wages are. The timing varies depending on which ETFs you have. From my experience, VAS distributions were added on my pre-fill in late August last year, but I have heard other ETFs were ready in early Sept. However, distributed capital gains may not be entered in the pre-fill at all, since capital gains varies for each shareholder and you need to check that section carefully. I have a video on how to complete the ETF capital gains sections when the ETF tax summary statement is issued by the Fund and I recommend you watch that video and wait for that statement to ensure your return is correct.
Thank so much Dan. I will just have to wait a bit more just to be safer. Not rushing on this, just always good to learn what’s happening. In term’s of capital gains, im not selling atm but will definitely continue to watch your vidoes like a guide. Helps alot.
Hi - you applied the 50% CGT discount as you said your entire holding is >1 year old. Does this mean you take cash and not the DRP for your distributions? I ask as my holdings are all >12 months except my DRPs so I’m thinking I need to adjust for these that not entitled to the discount?
Thanks for your reply! Also am I right in thinking this CGT is only from changes in the holdings inside the ETF (eg changes in the ASX200 for VAS). If I sold 100 VAS I also have to calculate and pay CGT in the same way as if I sold say 100 BHP shares?
Hi Dan! I'm just wondering if you could help with this question. Based on my annual tax statement from Vanguard, how can I double check the prefilled info for 'income' and 'credit/tax withheld' is correct? How can I calculate/derive the prefilled figures using my vanguard annual statement?
Hi Karen. The numbers in the prefill should match your tax statement for each box number for each investment. I would check prefill with your tax statements.
Hi Dan! Thank you for this, it is super helpful for first time ETF investors (like me :D). I was wondering what the information would be if one were to purchase a Portfolio Tax Pack (eg. the one in Computershare)? Would it still be better to wait for the annual tax statement in Aug-Sept? Thank you so much!
Glad it was helpful! If you are buying ETFs in these pack then yes it is best to wait for the annual tax summary. If the pack is for individual listed shares only then no you wouldn’t need to. Hope this is clear!
This might already be asked/answered but what if I don’t have a tax statement because I hold units with a custodial broker like Stake/Superhero? Thanks in advance
Those companies should still issue a report for completing your tax return. I saw Stake has this page hellostake.com/au/support/documents-and-statements/taxes-and-forms/26010648086297
Hi Dan, thanks for the video. That's super helpful! I have a questio - For all the ETFs I hold e.g. VDAG, VDHG, VAS, VGS etc, should I always include them under "Managed fund distributions" instead of "Dividends"? Thans in advance
Thanks Michelle for watching! Yes that right for ETFs as they pay “distribution” and not “dividends”. Only shares in direct companies pay dividends. Hope that makes it clearer.
A question: If I invest certain amount once a month for more than one year, How do I know how much of Net capital gain(18A) is for more than 12 months and how much is from less than 12 month that I should entre double?
Good question. You need to be able to identify which shares you sold, the date that you bought them and the price paid and you pick the ones that you sold. Depending on which ones you sold will determine if you can use the 50% CGT discount. I have another video which covers CGT in more detail here: ua-cam.com/video/2qC1bYl0A50/v-deo.html
Hi Dan, fantastic videos! It is my first year holding ETFs and in putting this information in my tax return. This is all very helpful for the ETFs that I've bought and kept. However, I sold some ETFs I had in NDQ.ASX as I wanted to consolidate and ended up with a capital loss for those. I have sold some shares of DMP.ASx & CXO.ASX iand there is also some loss. My doubt is - can I report total loss combining “both shares and ETF” loss and report the same together in Capital Gain field of myTax?
Thanks for watching. So if you have a combined capital loss position for the tax year as you describe, then you would report zero net capital gain in your tax return and then carry forward the combined unused losses to be applied against future capital gains. Most capital losses can be combined and carried forward against future capital gains, except for some CGT events like a loss from personal use assets (e.g. boats, furniture).
I avoided jail time with this video. Thank you very much
I’m so glad it helped!
I've been spending hours trying to figure out how to do this and finally stumbled your video. Wonder I couldn't find this very easy to understand info from ATO itself. Great video.
Thanks so much. Glad it helps
Thanks Dan! You are a lifesaver! I had put off doing my income tax as i didn't know how to fill in the fields for ETF distributions (first fin. year buying ETFs and receiving dividends for me). How does the lay person even find this information? I imagine you are in the field of tax so you knew how to do this through your own references.
Thanks for watching and for your question. I do have have a tax background so the information comes a little easier for me. There are ATO links in my video description that can help share more information and it is a good start. Please let me know if there are any other areas that caused you some challenges and I can look at making future videos about them!
Thankyou for this video Dan! It has saved me a lot of time, money and headaches.
Thanks for watching and letting me know it helped!
I wish I found this last year, this was so much easier to follow then what I used to do last years tax.
Glad to hear it helped!
Hi there, you saved my life. Great video, very informative. Thank you so much for your help!🙏
So glad it helps!
@@MoneywithDan Please do videos on investing, budgeting - anything related to money. Thank you kindly.
Dan thank you so much for the video, yes I did my own tax return and followed your steps. Invested very little amount so wasn’t happy to see the agent for that amount 😬 subscribed now 👏🏻
Glad it helped!
Thanks is exactly I need, thank you!
Thanks for watching!
Amazing video, earned my subscription!
Thank you 🙏
Great video Dan. Do you have a similar tutorial on foreign ETFs like VTS, VEU, etc?
Hi. Thanks for watching. Unfortunately not but will consider creating one soon. A foreign etf would be all foreign income, foreign tax credit at box 20 and capital gains at box 18.
@Money with Dan, firstly, thank you for your excellent videos - they're incredibly helpful and given in a manner that makes them so much easier to take on board - a real credit to you.
My question pertains to the 18A/18H section you touch on at the 3m25s mark. I feel silly asking this, but are you certain that the '12mth+/discounted' Net CGT as shown in 18A is due to the investor holding the ETF for 12mths+, as my understanding was this is where the ETF itself (obviously the managed fund behind it) is applying the 'discounted' CGT as it had disposed of assets which met this rule.
You mention that the trust passes these on to the investor to pay these at their relevant rate i.e if they've held the ETF for 12mths+ it's at the discounted rate, if not - will be same as 18H i.e no discount. So is the discount for how long the investor has held the ETF or how long the ETF held the assets it disposed of?
Apologies if that is clear as mud. Thank you in advance :-)
Hi @N.Granger. Thanks for watching and supporting my channel!
Great question! I sorry the answer is quite technical but in summary the tax rules I mentioned in this video apply to AMIT (Attribution managed investment trusts) which are most of the large ETFs like VAS.
The AMIT rules ensure that, for tax purposes, amounts attributed to you by the trust, keep their tax character; flow through to you, and are treated as if you had received the amount directly in your own right. In relation to capital gains, these rules mean you will treat the capital gains component of your trust income as being a capital gain that you made. It also requires capital gains to be grossed up for the purposes of applying the 50% discount and capital losses from other investments. If you were not eligible for the 50% Discount, then the amount at 18H is what you would be taxed at (excluding an other capital gains events from other investments) and not what the Fund tells you to put at label 18A on their tax summary.
It can get quite technical but on your tax statement from your Fund you should see the words "AMIT" to know if these rules apply. If you want more detail, then the ATO explains it further here: www.ato.gov.au/Individuals/Tax-return/2022/In-detail/Publications/personal-investors-guide-to-capital-gains-tax-2022/?page=5#Part_C__Distributions_from_managed_funds
I hope this clarifies.
Dan
Excellent video (nice voice too) - I was tearing my hair out not seeing the numbers like 13U - but as you pointed out they are on the left of each sub-section that's sweet ! Now I just have to ring the ATO to ask how the hell I work out Capital Gains Tax Discount (total for multiple ETFs) in the un-numbered total field at the bottom of the Capital Gains section (for CG>$10K) - I guessed Gross CG minus Net CG but dunno so I'll call the ATO - Help !
Thanks so much much for watching. Glad it helps. I created another video about capital gains tax that might help that you can find here How Capital Gains Tax is Calculated in Australia
ua-cam.com/video/speLrYoEsew/v-deo.html
Thanks Dan for the very useful video! I have EFTs myself and found reassurance in your video that I was on the right track to populate my managed fund section of the Tax Return (which was already pre-filled). As I didn't hold my ETF for more then 12 months yet in FY24, I removed the CGT 50% discount. That was the first tricky part. Now, the last challenging bit to understand is the AMIT cost base adjustment. I didn't understand whether I should include this in my Tax Return. I haven't sold any ETF so far. Where is the AMIT adjustment playing a role?
Thanks for the question. Glad the video helped.
AMIT cost base adjustments are something to keep record of each year and will not impact the tax return until you sell some units or if your cost base drops below zero (very rare). When that happens you will have a CGT event and the AMIT will either increase or decrease your cost base, impacting the amount of the net capital gain to include in your tax return.
It’s easy to lose track of these AMIT cost base adjustments and I use Sharesight to help me do that each year since I usually hold for the long term personally. It is also good at calculating the tax return items too. Best wishes!
Thank you, Dan! Much appreciated! I have subscribed to your channel! Keep up the great work 💪🏼
First time watching your video. Thanks for sharing. Found it very useful. Haven’t invested in ETFs yet as I was worried about how to complete my tax return.
Keep up the great work!
@ thanks so much. Best of luck investing!
Life saver! Thanks
Glad it helped!
Great video. Believe it or not, I work in a senior position in finance and have never managed to complete a tax return correctly. I sold all of my shares as it all got too much.
Thanks so much for watching. I can believe it… I have prepared a lot of tax returns for accountants in an earlier career😉
Thank you Dan, this was helpful! Is it correct that AFIC income goes in the dividends part? Thank you
Thanks for watching. That sound correct as AFIC is an investment “company” and is not an “ETF”.
Thanks so much for this video. It was very helpful.
Thanks for watching!
Great video 👌👌👌
Where should we put quarterly payments we received from iShares?
You should only put details from annual tax statement for etf and managed trusts. This is because the tax components are not known until the end of the year.
Thanks Dan, great video. One question, I received cash dividends from my ETF's, which are shown within my statements in Part B 'cash distribution' - are these required to be included anywhere or are they already covered within the figures provided in Part A?
Thanks for watching. Part A should cover these for inclusion in tax return for individuals.
Part B is more detail that is useful for accountants reconciling cash payments received to distribution statement.
Great video mate, was confused whether I had to enter dividend again under the dividend section or if it was included in this managed fund section, i assume it's the latter like you said in the video?
Thanks Vincent. Thanks for watching! Yes dividends from companies you own shares in have dividends whereas your ETFs are in the managed funds section.
Hi Dan, fantastic videos! It is my first year holding ETFs and inputting this information in my tax return. This is all very helpful for the ETFs that I've bought and kept. However, I sold some ETFs I had in Spaceship as I wanted to consolidate and ended up with a capital loss for those. I'm not sure where to go about entering those details? Would you have any advice, please?
I’m so glad to hear it’s helping. Capital losses can be used to offset current capital losses or can be carried forward to use against future capital gains. I talk a bit more about CGT in general in this video here:
ua-cam.com/video/speLrYoEsew/v-deo.html
this is very helpful, thank you very much.
what confuses me is when i have 10 shares for example, and the etf sells shares as per their business as usual operations, i still have the exact same 10 shares.
but then i still get capital gains from the sales the etf made during the year. which i wouldn't know how many shares they sold, or if they held the shares for more than 12 months (though this second point is likely that they held the sold shares for 12 months). how would the discount even apply to me if they didn't sell my shares-in your video you mention that you held the assets for more than 12 months but how do you know the shares they sold are your shares that you've had for over 12 months and not the just recently bought ones?
do i still enter in the capital gains numbers in 18A/18H?
if so, would it just be the same numbers as per your video? ie include the discount in 18A and use exactly the same number as the statement for 18A and 18H.
apologies if you have answered the question in a different way and i still don't get it. or if my question is worded poorly. thank you!
I’m glad it is helping. I created another video where I explain this a bit more here : ETF Capital Gains in MyGov: How to Add Them Without Pre-Fill | 2023 Australian Tax Return
ua-cam.com/video/Ze6KY4tcSiU/v-deo.html
Essentially, the ETF is a Trust, not a company, which means it does not pay tax on capital gains it makes selling shares and instead distributed it to you to pay the tax at your rates. The tax statement tells you if it is a discount gain or not and this video talks more about how to treat it.
Legend. Great video
Thanks for watching!
Thanks so much! Where should i enter the interest paid to the bank during the year, if the ETF was purchased using borrowed money. Should i include it in Dividend deduction or 'Other deduction'
Thanks for watching! Yes you should enter it at the dividend deduction section of MyTax. At Personalise return, select: You had deductions you want to claim
Gifts, donations, interest, dividends, and the cost of managing your tax affairs
To show your interest deductions, at Prepare return select 'Add/Edit' at the Deductions banner. At the Interest deductions banner: For each interest deduction expense, select Add and enter information into the corresponding fields. Hope this helps!
Excellent, ETF tax return always too complicated. So if I wait for the pre-filled in MyTax it will correctly fill in Income & Credit/Tax withheld I don't have to do anything like in this video ?
Thanks for watching. For Australian listed ETFs then it should be pre-filled by now. If you have foreign ones then no, they won’t be pre-filled.
@@MoneywithDan Thx Dan, much appreciated.
Thank you so much. 👌
Your welcome!
Hi Dan, great video. When I look at the tax statement report it seems to show the tax guide as an aggregate. I cannot see a tax guide for the 2 etfs I own. What iam asking is if you have 2 etfs do you need to do the distribution section once or twice.
Hi. Thanks for watching. If you have two the yes you need to complete to worksheets and MyGov will consolidate them for you. If you use Sharesight, it will create a consolidated tax statement for you so you only need to fill it in once. I have a link in the description Sharesight if that interests you. Thanks
@@MoneywithDan hmm interesting my Vanguard statement is showing my 2 etfs as one in the tax guide
Hi Dan, great video. Two questions:
1)Is there a way to know in advance, the tax liability that a certain ETF distribution has attracted? I mean, as soon as it has been paid and before tax time? Looking for the best way to calculate my total tax position in advance.
2) What's the best way to compare the after tax returns for each ETF/stock/LiC?
Will be awesome if you could videos on these topics if you haven't already.
Cheers
Alan
Thanks for watching and for your suggestions.
I recommend using Sharesight, an online investment tracking tool, to track after tax performance. It has some handy reports that be used to estimate after tax performance but only the final tax statement issued by the etf each year will be 100% accurate which is typically issued in August/September if Australian domiciled.
You can find a link to Sharesight here: www.sharesight.com/moneywithdan/ where you sign up free for the first 10 holdings to trial it out.
(BONUS When you signup using this link, the first 4 months of subscription are free if you choose to upgrade to advanced plan and I may get a small my commission at no extra cost to you, so we both win!)
Great video, Thank you! A question: Futu moomoo gave me one unit apple share as gift for opening account with FUTU and I sold it. Futu did't provide tax statement, How I should report this sell one unit apple to ATO on my tax return?
It sounds like it is a capital gain or loss from selling units in a managed fund instead of a distributed capital gain from FUTU. This would still be a capital gains in your tax return.
Thank you thank you thank you for this video!!!!
Thanks for watching!
Great video! What about the 'net cash distribution' under Part B - does that amount need to be entered here?
If you entered all the other sections in correctly then you shouldn’t be adding this in as you would be double counting income.
@@MoneywithDan You're an absolute legend - ty for the reply. I called the ATO to ask and they had no idea!
THANKYOU - I was in tears and regretting ever buying shares till seing this video. Am I right in thinking that I report individual shares under dividends only and ETFs under managed funds only (I have a mixture of both under my sharsies account; this seems to be in contrast with my Raiz account which needed me to report under both)
Thanks Brit. I’m so glad this video has helped. Normally if you bought equities with a traditional broker you would be correct about dividends from individual shares being reported separately in the tax return compared to ETFs.
It sounds right that investments bought with Raiz or Sharesies would be different as I understand there is a custodian (I.e held on trust for your benefit) involved so it could be considered trust income for tax return and not for others depending on all the facts.
Raiz explains it more here: raizinvest.com.au/blog/what-is-a-custodian-and-what-do-they-mean-for-raiz-users/
Minor structure differences between Raiz and Sharesies could lead to different reporting requirement for tax which is confusing.
I think I should make a video about this as lot of people use Raiz instead of a traditional broker. Best wishes!
Thank you so much for this video Dan. I have a question: my shares tax income statement doesn't provide info for: "13Y - Total other deductions relating to non-primary production" or "24V. Total other income - category 4." - does that mean it doesn't apply to me and I can submit my form without this info?
Thanks for watching. Are you sure you are referring to trust distribution tax statement? This video if for ETFs which are trusts.
I only ask as you said “Shares” which normally refers to listed companies which would normally pay dividends and be declared elsewhere in the tax return.
I note that most ETFs or Trusts are unlikely to have issued their annual tax summaries for trust distributions yet and they typically are issued in August or later.
Hi Dan! This is such a helpful video - thank you! I'm wondering what to do if I wasn't given one of these letters for the EFT? E.g. SPY owned by SPDR doesn't give out AMMA tax statements. I'm not sure how to best declare the distributions I've received. Do you have any advice for this scenario?
Hi. Thanks for watching. According to the tax instructions from State Street, they do issue AMMA - see the announcement here www.ssga.com/library-content/pdfs/etf/au/spdr-etf-tax-guide.pdf
They may be late or you may need to log into the investor centre to obtain you copy.
Hi Dan. I got an ETF & it has pre filled mytax which is great. However confusing part is - as per the end of year tax statement from ETF cash distribution is $111 & pre filled income in mytax is $195. I have checked that numbers are correctly filled in my tax. Am I missing something here or $195 is the correct income number even though cash distribution is $111? Thank you.
It sounds like it could be correct as it came from prefill, but is hard to say without looking at tax statement.
Having a difference between taxable income and cash payments with ETFs is common. For example, if your ETF distributes a lot of franked income then it will mean taxable income is higher than cash received as the franking credit will gross up your taxable income while the franking credit will reduce tax owing, despite higher taxable income.
Sometime it works the other way where your taxable income is less than cash distribution. For example Capital gain paid in cash is higher because taxable income is lower due to CGT discount.
It depends on type of income the trust is distributing that year and its tax treatment and tax rules applicable to the owner. Best wishes.
@MoneywithDan Thanks Dan for reply.
I guess it is safe to assume that numbers that mytax has calculated are correct based on correctly generated pre filled data from annual statement.
Thank you so much for this video. I followed your steps but i am getting an message when I complete the capital gains or losses "Unless the carry forward capital loss is entirely due to capital losses from collectables and none of the net capital gain includes a collectable gain, you will need to review your calculations." I have no idea what this means? What I am not sure of is I have three managed funds for my kids very small amounts e.g. $30 each and I have ETF for myself and I also purchased some shares which I sold. When I enter the information into the capital gains field then also complete the capital gains and losses field I get this message. I have included the total of all net capital gains the total of net capital gain and the net capital loss carried forward to later income years. is this correct?
Thanks for watching. Did you select asset type as “collectibles” by mistake? When using the CGT record keeping tool? Collectibles are a specific type of asset (artwork, jewellery etc) where capital losses can’t be carried forward. Try going back to that section and changing asset type to “Australian units in unit trust” or whatever is relevant and definitely not collectibles. Best of luck.
Hi, Thanks for your video. It is great. I'm having two questions
1. I look at my share of income (it includes 13U+13C and foriegn income), but I am wondering why it is not equal to the total amount of distributions I received? Isn't the distribution the only taxable income in ETFs?
2. I saw my distrubutions were recorded in my capital gain section. So my total taxable income is [my share of income (as above) + capital gain income. ]. Feel my distributions being counted twice for income tax.
Thanks a lot for answering my Q.
Hi Feng. thanks for watching!
1. taxable income for trust ps is often not equal to cash distribution paid for many reasons. Sometimes it’s less, sometimes more. It’s usually impacted by tax offsets, capital returns and franking credits. Section B of your tax tax statements shows where the difference between cash payment and tax distribution comes from line by line.
2. if distributed capital gains is recorded by prefill in capital gains sections then it is recorded at right section. if you enter capital gains using the worksheet method I showed (before prefill) then it would be double counting)
hope this helps
@@MoneywithDan so my etf distributions are counted in capital gains then what's " the share of income less capital gains 13U"? Is that the money my ETF company made but I don't receive? But I still have to pay tax? Thanks
@@fehhh2253 share of income less capital gains are mostly dividend income or distributions from other listed trust. Most of this income is paid to you, except franking credits which is part of taxable income and you get the franking credit to offset tax.
@@MoneywithDan I see. Then what's the capital gain on my ETF report as I did not sell any units I wonder where this capital gain came from. I assumed that is the capital gains happened within the ETF? Thank you
Hi Dan
Thank you for the insightful video. Just have a few questions in lodging tax returns. do we have to wait for AMMA tax statements (aug - sept) for ETFs before we can lodge or can we just use the Sharesight? Also if i hold multiple etfs do we receive the AMMA statements from each ETF issuers or does the broker provide this? I use Stake.
Thank you in advance.
P.s. beginner investor on ETFs, just this month
Thanks for watching👍. It is best to wait for tax statements as they contain lots of detail that may not be in the Sharesight income report. However, I note that Sharesight issues their own tax statements for all your investments entered in one consolidated tax statement which is a big advantage of using Sharesight. However Sharesight tax statements are usually ready in Sep after most big ETFs issue their tax statements. It is best to wait for this from Sharesight as it it is much easier to complete your tax return using this. The reason is that if you have multiple etfs, than yes, each etf will issue a seperate tax statement if they paid you a distribution. If you can’t wait for Sharesight to lodge then you will need to consolidate the tax statements in your tax return your self which can be a lot of work.
Thank you so much Dan for a very detailed explanation! Really helps to understand it more better. Appreciate it.
Currently watching your other videos! 👍
@@MoneywithDan
Hi Dan
Back here at tax time. May i ask these questions about tax return.
1. I run sharesight report and they included my first etf distributions, ex date 3 july, pay date 13/07 2023 income in 2022-2023 FY, which i think should be in 2023-24 FY since it was paid after july 2023.
2. Sharesight is already showing my consolidated distributions (usually ready in sept) which i believe will be entered in MYGOV. however there is a button “confirm distributions”. Does this mean i just need to wait for my AMMT statements to confirm? Or will this be comfirmed by sharesight once ready (sept).
3. Does ATO pre-fill ETF distributions?
Really would appreciate your help on this. 😊
@@RenceBsa hi. Let me see:
1. Sharesight will issue their own tax distribution statement that consolidates for all ETFs you have entered into Sharesight in early Sep. I don’t think this tax report for FY23 is final yet. It should be accurate if all transactions are recorded in Sharesight.
2. The “Confirm” button for distributions is a feature to confirm the amount Sharesight calculated as a distribution agrees to the amount you were actually paid in your bank. If the amount agrees then that is when you should check this as confirmed. Sometimes, there are mistakes in the distribution, which are because some purchases are not recorded correctly.
3. The ATO pre-fill will eventually include etf distributions but usually not in July like salary and wages are. The timing varies depending on which ETFs you have. From my experience, VAS distributions were added on my pre-fill in late August last year, but I have heard other ETFs were ready in early Sept. However, distributed capital gains may not be entered in the pre-fill at all, since capital gains varies for each shareholder and you need to check that section carefully. I have a video on how to complete the ETF capital gains sections when the ETF tax summary statement is issued by the Fund and I recommend you watch that video and wait for that statement to ensure your return is correct.
Thank so much Dan.
I will just have to wait a bit more just to be safer. Not rushing on this, just always good to learn what’s happening. In term’s of capital gains, im not selling atm but will definitely continue to watch your vidoes like a guide. Helps alot.
Hi - you applied the 50% CGT discount as you said your entire holding is >1 year old. Does this mean you take cash and not the DRP for your distributions? I ask as my holdings are all >12 months except my DRPs so I’m thinking I need to adjust for these that not entitled to the discount?
Thanks for you watching. Yes that is correct - cash Dividends. You would be correct that DRPs not owned for
Thanks for your reply! Also am I right in thinking this CGT is only from changes in the holdings inside the ETF (eg changes in the ASX200 for VAS). If I sold 100 VAS I also have to calculate and pay CGT in the same way as if I sold say 100 BHP shares?
Hi Dan! I'm just wondering if you could help with this question. Based on my annual tax statement from Vanguard, how can I double check the prefilled info for 'income' and 'credit/tax withheld' is correct? How can I calculate/derive the prefilled figures using my vanguard annual statement?
Hi Karen. The numbers in the prefill should match your tax statement for each box number for each investment. I would check prefill with your tax statements.
Hi Dan! Thank you for this, it is super helpful for first time ETF investors (like me :D).
I was wondering what the information would be if one were to purchase a Portfolio Tax Pack (eg. the one in Computershare)? Would it still be better to wait for the annual tax statement in Aug-Sept?
Thank you so much!
Glad it was helpful! If you are buying ETFs in these pack then yes it is best to wait for the annual tax summary. If the pack is for individual listed shares only then no you wouldn’t need to. Hope this is clear!
@@MoneywithDan alright thank you! 😄
This might already be asked/answered but what if I don’t have a tax statement because I hold units with a custodial broker like Stake/Superhero? Thanks in advance
Those companies should still issue a report for completing your tax return. I saw Stake has this page hellostake.com/au/support/documents-and-statements/taxes-and-forms/26010648086297
@@MoneywithDan thanks Dan, I’ll check with them.
Hi Dan, thanks for the video. That's super helpful! I have a questio - For all the ETFs I hold e.g. VDAG, VDHG, VAS, VGS etc, should I always include them under "Managed fund distributions" instead of "Dividends"? Thans in advance
Thanks Michelle for watching! Yes that right for ETFs as they pay “distribution” and not “dividends”. Only shares in direct companies pay dividends. Hope that makes it clearer.
A question: If I invest certain amount once a month for more than one year, How do I know how much of Net capital gain(18A) is for more than 12 months and how much is from less than 12 month that I should entre double?
Good question. You need to be able to identify which shares you sold, the date that you bought them and the price paid and you pick the ones that you sold. Depending on which ones you sold will determine if you can use the 50% CGT discount. I have another video which covers CGT in more detail here: ua-cam.com/video/2qC1bYl0A50/v-deo.html
See you again next year
Look forward to it ☺️
I dont know how to thank you !!!
Thanks for watching. Please share with anyone that needs help too!
Hi Dan, fantastic videos! It is my first year holding ETFs and in putting this information in my tax return. This is all very helpful for the ETFs that I've bought and kept. However, I sold some ETFs I had in NDQ.ASX as I wanted to consolidate and ended up with a capital loss for those. I have sold some shares of DMP.ASx & CXO.ASX iand there is also some loss.
My doubt is - can I report total loss combining “both shares and ETF” loss and report the same together in Capital Gain field of myTax?
Thanks for watching. So if you have a combined capital loss position for the tax year as you describe, then you would report zero net capital gain in your tax return and then carry forward the combined unused losses to be applied against future capital gains. Most capital losses can be combined and carried forward against future capital gains, except for some CGT events like a loss from personal use assets (e.g. boats, furniture).