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_Light_Rain(Newbie)Newbie
24 June 2021

Hi All,

I'm an Australia Citizen who has been residing overseas for a number of years now, during that time I have been investing into "iShares Core MSCI World UCITS ETF USD (Acc)" ---- IWDA.LSE which is domiciled in Ireland and pays no dividends, rather it is an accumulating ETF.

I am planning to move back to Australia at the end of this year and was hoping to understand how the ATO treats these kind of investments? What reporting needs to be done when submitting an Australia Tax Return? It seems very difficult if not impossible to determine exactly what dividends that are re-invested back into these kind of ETFs.If it is going to make my life a lot easier in the long run to dispose of this ETF and buy something domiciled in Australia instead, I am open to taking this action even if it will cost quite a bit in transaction fees. Appreciate anyones experience and advice on this particular topic as it seems to be hard to come by.Thank you.

10,387 views
14 replies
10,387 views
14 replies

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Most helpful replyATO Certified Response

AriATO(Community Support)Community Support
ATO Certified Response25 June 2021

Hi @Light_Rain

Dividends reinvested are taxable as if you received a cash dividend and purchased more shares. If you're an Australian resident for tax purposes then you would report Foreign-source income at Item 20 on the individual tax return and you maybe eligible for a foreign income tax offset for any tax paid overseas.

I'm assuming you don't receive a statement with the relevant details so you'll need to decide what will work best for you to meet your tax obligations when you return.

Take a look at our website about Dividends reinvested and Tax return instructions for Foreign source income. You can also search our forum for ETF's to bring up questions other people have asked that you might find helpful.

Ari

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How does the ATO treat ""Accumulating" overseas ETF's? | ATO Community