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CGT and Managed Fund

Newbie

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Hello - I hold units in several managed funds with Vanguard Australia. Each year, Vanguard send out a tax statement with information to be entered into my tax return regarding details of distributions (which are re-invested in the fund). I understand that tax-related events can be triggered in the course of managing the fund, and these are passed to their clients and reported in the annual statements.

 

Am I correct in my understanding that if I were to sell some units that the CGT outcome of the sale are *not* captured in these statements? I (or an accountant) will need to manually calculate the difference in buy/sell prices myself and report the capital gains/loss as a separate item at tax time?

 

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Bonus question: Raiz and other 'micro-investing' platforms advertise the ease with which individuals can make regular small investments in ETF's. Is this the same situation with Vangard, as it seems that these platforms provide no means for calculating CGT associated with selling units on these platforms though (again, CGT associated with selling units is not part of the annual statement?)?. These platforms must be a headache to work out your CGT liability if you made many small trades on them!

 

Thanks!

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Most helpful response

ATO Community Support

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Hi @Ratmuffin

 

Some Managed funds issue a separate CGT statement if you dispose of units. It will be best to check with Vanguard about what their annual statements show and if they issue a CGT statement in addition to their annual statement. At the very least they should have a guide explaining what your statement shows.

 

For completing your tax return take a look at Capital gains and managed funds about which sections you'll need to complete because it depends on your circumstances.

 

Ari

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Ratmuffin

 

Some Managed funds issue a separate CGT statement if you dispose of units. It will be best to check with Vanguard about what their annual statements show and if they issue a CGT statement in addition to their annual statement. At the very least they should have a guide explaining what your statement shows.

 

For completing your tax return take a look at Capital gains and managed funds about which sections you'll need to complete because it depends on your circumstances.

 

Ari