Frequently Asked Questions

Following steps will assist you in entering your bank transactions:

• Via Dashboard select Fund Account
• Select Bank Transactions from Banking menu on the Toolbar
• Select Create tab to manually enter a transaction or File Upload option to load multiple transactions

To add TFN tax charged on bank interest select Bank Transaction link via Banking menu. Create a bank transaction of type Tax, select correct sub transaction type, enter amount of tax charged and Save. See Tax Reconciliation Report for total tax paid.

To add TFN/Withholding tax to a dividend, distribution or interest payments on Investments select Corporate Action Detail link via Portfolio menu. Enter search criteria to find the related transaction and then simply edit to add the tax amount. See Tax Reconciliation Report for total tax paid.

Discount applies only after offsetting all the losses in the financial year. For personal and trust accounts 50% discount applies, while 33.33% applies to SMSF accounts.

Personal investors pay tax at personal income tax rate while SMSF Fund pays 15% on net Capital Gains. Financial Year End losses are carried forward to the following financial year.

CGT Optimisation includes 3 phase process methodology to maximise tax benefit at all times. Loss making parcels are offset against all short term gain parcels first before using up any discount parcels. Discount parcels are then processed to work out if indexation method is applicable. This applies to purchases that were made after 20th September 1985 and before 21st September 1999. Parcels that were purchased before 20th September 1985 is processed last as these are CGT Free.

Note: CGT Losses from prior financial year and CGT from Distributions are also included in the process.

FIFO stands for First in First Out when calculating Capital Gains Tax. All shares bought first are select first when calculating Capital Gains Tax. Except for shares bought before 20th September 1985 which are processed last as these shares is CGT Free.

LIFO stands for Last in First Out when calculating Capital Gains Tax. All shares bought last are selected first when calculating Capital Gains Tax.

Dividend is a Corporate Action (CA) transaction and is generated by the system. You only need to edit this or any other (CA) transaction that may differ as a result of rounding or TFN tax/Withholding tax has to be added or a dividend has to be replaced by a Bonus Share Plan.

Following corporate action transactions are system generated:

• Bonus Issue
• Capital Return
• Distribution
• Dividends
• Interest
• Share Instalment
• Share Reconstruction
• Share Split

Note: Only Distributions can be entered manually via Corporate Action Detail link via Portfolio menu. Select Create tab to enter a new distribution.

A bonus share plan is an option to a dividend. System will automatically generate a dividend at all times. The following steps are required to change this dividend to a Bonus Share Plan:

• Search for the dividend via Corporate Action Detail from Portfolio menu on the toolbar
• Select Edit link to edit the dividend
• Change Option Plan to "Bonus Share Plan"
• Enter the Bonus Share Plan via Trade Transaction link.

Note: Share Price is $0.00 and trade date/settlement date is the same as "Dividend Payable Date". Dividend will no longer appear in your income report as there is no tax applicable until the bonus shares are sold.

Whenever a share transaction is created or edited, all related corporate action transactions are either created or adjusted.

Following (CA) transactions are system generated and only applies to listed shares.

• Bonus Issue
• Capital Return
• Distribution
• Dividends
• Interest
• Share Instalment
• Share Reconstruction
• Share Split

Note: (CA) transactions that have already been edited by user will not be adjusted as these are considered final value for tax reporting.

A dividend re-investment has to be manually entered via the Trade Transaction menu. Cost base of the transaction is the dividend amount.

When shares are bought before the ex-date and sold on/after ex-date and the no of days between the buy/sell dates is less than 45 days credits from the dividend is counted as 45day rule credits, 90 days for preference shares. These credits are not entitled to a refund and excluded from tax.

Note: Exception applies until the total credits have reached a threshold of $5,000. Dividends from share buy back are included in this total.

Ex-date is referred to as exclusive date shares bought on or after ex-date are not entitled to a Corporate Action. Example Investors won't be entitled to a dividend, distribution, Interest and any other corporate actions.

LIC Gain in included in a dividend and is referred to as Listed Investment Capital Gain. LIC Gain is treated like an expense and is tax deductible.

Note: Amount deductible depends on the account type, 50% for personal Funds and 33.33% for SMSF Funds. See Expense Report and Tax Report for more information.

With some listed trust companies distributions are issued where the ex-date and record date is prior to financial year end and payment is made into the new financial year. Tax Financial Year End date is the Year in which this distribution is taxable.

Note: Distribution is reported in both financial years. See Tax Reconciliation and Income report for additional information.

A dividend is issued by a listed company only while a distribution is issued by managed funds and listed trust companies. Tax Free, Tax Deferred etc are issued in a Distribution which are not issued in a dividend.

Bonus Share Plan is issued in place of a dividend and the cost base of these shares is zero. While Bonus Issue is generated by the system and cost base is split with that of the purchased shares and has the same date as the purchased shares.

Dividend transactions are generated as at ex-date and available as at payable date. Between ex-date and payable date the amount will be included as Dividend Payable in the Portfolio Valuation Report if payable date is a future date.

Note: This applied to all corporate action transactions.

If you have sold some shares before fund start date where dividend received was after fund start date the dividend calculated is only on the remaining shares.

Example Fund start date is 1-Jul-2011, sold 500 shares on 30-Jun-2011. System will generate dividends on the remaining 500 shares payable on the 1-Jul-2011. To resolve this, simply select dividend transaction via Corporate Action Detail link and Edit the transaction with details from your dividend statement.

When setting up your Fund Account check your Tax Entity Type. You must select "DIY Superannuation (SMSF)" from the list.

Note: Once the fund is in operation you cannot change this setting.

At 60 all member funds become tax free, funds can be withdrawn only when member is in a transition to retirement phase (TTR) or fully retired. Alternatively a member can withdraw Unrestricted Non Preserved Benefit amount (UNPB) at any time.

Note: Tax may be payable on taxable component.

All earnings in the Fund are taxed at 15% unless it is in a pension mode where earning are tax free. Earnings from a SMSF Fund are included in the taxable component of the Fund while Tax Free component remains fixed.

SMSF Funds can have a maximum of 4 members.

All contributions on or after 1st July 1999 in a Super Fund including SMSF are treated as preserved money. These funds can only be withdrawn under special circumstances or when in pension phase or when in a transition to retirement pension phase (TTR).

RNPB stands for Restricted Non Preserved Benefit. All RNPB money can only be withdrawn under special circumstances.

UNPB stands for Unrestricted Non Preserved Benefit. Prior to 1st July 1999 all personal contributions were treated as UNPB. Since then all personal contributions are now preserved.

Note: Personal contributions although restricted still remain as Tax Free.

In a SMSF Fund Preservation Age starts at Age 55 and up to Age 60. For those born before 1st July 1960 preservation age is 55. From 1st July 1960 onwards the age increments by 1 year until age 60.

After the introduction of Super Simplification on 1st July 2007 tax free was introduced as one of the 2 components that make up the balance of a member's funds. When withdrawing funds a member has to take taxable portion together with the tax free. Tax Free on its own cannot be withdrawn at any time.

Note: Tax may be payable on Taxable component (if applicable).

All SMSF member transactions are unit based. Unit price is calculated based on the Net Asset Value of the Fund (NAV) as at transaction date minus 1 day. For transactions created before Fund Start Date the price will always be $1.00 as the system cannot calculate unit price without full financial information on the Fund. If you have started after the start of financial year then the initial transaction will also be priced at $1.00

Following steps will assist you in entering your trade transactions.

• Via Dashboard select Fund Account
• Select Trade Transaction from Portfolio menu on the Toolbar
• Select Create tab to manually enter a transaction or File Upload option to load multiple transactions
• To Edit/Delete select Search tab, enter search criteria to list transactions then select option

Profit Analyser is a function that allows you to estimate your profit/loss for all unsold investment transactions by stock. All you need to do is enter a desired price that you intend to sell at and the system will calculate your expected profit/loss.

Note: Corporate Action transactions are included in the initial purchased transaction. Example Bonus Issue, Capital Return etc.

There is no tax payable on the Capital return amount instead the cost base of the shares will be reduced. If shares are sold prior to payment date then the capital return amount will be treated as excess capital and CGT will apply.

Example: If the shares were held for a long term and entitled to a discount then Capital Return will have the same entitlement.

Capital return amount reduces cost base to shares as capital return is not considered taxable income. See Trade report for any capital return received.

Tax free/Tax deferred is applied to related buy transactions by reducing the cost base of the transaction. Amount of reduction depends on how much profit/loss is made from the sale of the trade. Tax is then payable on the net profit.

If you have received tax free, tax deferred, tax exempt and CGT in a distribution then this amount is not taxable income even though received as income.

Note: CGT components will be taxed as Capital Gains instead of Income. Tax Free and Tax Deferred will be taxed when the share are disposed while Tax Free will only apply if the shares are sold as at loss. See: Tax Reconciliation report for more information.

Any CGT components issued in a trust distribution will be included in CGT calculation process. This amount will also be included in Income Report as income received. See Realised (CGT) Report and Tax Reconciliation report for more information.

Prior year losses are automatically included with current financial year CGT calculation and any losses remaining will be rolled over to the next financial year.

If an ATO tax ruling is applied on the share buy back then the Capital received from the company is used to calculated Accounting profit/loss while Proceeds stated by the ATO ruling is used for CGT calculation.