BetaShares annual tax statements are now digital
BetaShares tax statements are now sent digitally to investors, unless paper post is specially requested. We made this change in 2020 both for the convenience of our investors, and to reduce the carbon footprint associated with paper-post sends.
Accessing annual tax statements
If your BetaShares investment has paid a distribution during the financial year, you will receive a tax statement setting out the details you will need to include in your tax return.
Annual tax statements can be accessed via your Investor Centre account with Link Market Services, and if opted in, notification that it is available will also be emailed to you.
- FY20/21 – Statements will be available by mid to late August
- FY19/20 – Statements available.
Receive notification that your tax statement is available directly to your email
Save time and be notified when information relating to your investment is available.
- If you’re not registered with Link – set up your account first, then set communication preferences once you’ve logged in
- If you’re already registered with Link – update your communication preferences to “All communications electronically”
BetaShares is happy to assist you with this process.
Alternatively, follow the set-up guide.
Each year we publish a guide to help investors prepare their Australian tax return in relation to their BetaShares investment.
- BetaShares FY20/21 tax guide will be available soon
- Previous guides: FY19/20
ETF Distributions – FAQs
ETFs are structured as a form of managed investment trust (MIT), a pooled unit trust structure in which investors may purchase units in order to get exposure to the underlying assets held by the unit trust.
In 2016, the Federal Government made changes to the way MITs are taxed. The responsible entity of a MIT can choose to apply what are known as the attribution rules in Division 276 of the Income Tax Assessment Act 1997 (ITAA 1997) by electing into the new taxation regime, meaning the MIT becomes an Attribution Managed Investment Trust (AMIT).
While the outcome of this election touches many taxation aspects, one consequence of the new rules is that AMITs are not required to pass through all the income they earn to their unitholders immediately, as is the case with funds that are not AMITs. Instead, an AMIT can ‘attribute’ income to its unitholders, and retain all or part of that income in the trust rather than paying all of it to investors in cash. Or an AMIT may choose to pay out more in cash than the income it attributes to its investors.
BetaShares has elected for all of our funds to be governed by the AMIT rules. Below are some FAQs that help to explain what the AMIT rules mean for you as an investor in one of our funds.
The AMIT rules were designed to simplify and make fairer the taxation of unitholders in managed investment trusts.
The key features of the AMIT regime include:
- AMITs use an ‘attribution’ method to allocate taxable income amounts to investors.
- The taxable income attributed to you may be different to the cash amount you actually receive.
- If the cash amount is different to the attribution amount, you make an adjustment to the cost base of your investment that reflects this difference.
The adjustment you make to the cost base of your investment depends on whether the gross cash distribution you receive is higher or lower than your attributed taxable income for the year:
- If your cash distribution is more than your attributed taxable income, then you reduce your cost base by the excess.
- If your cash distribution is less than your attributed taxable income, then you increase your cost base by the shortfall.
The change to your cost base affects the capital gain or loss you will make when you come to dispose of your investment, and therefore the tax consequences of that disposal.
An increase in your cost base means that amounts that were counted as taxable income, but which you did not receive in cash, are not taxed again as capital gains on disposal.
A decrease in your cost base means that amounts you received in cash, but which were not counted as taxable income at the time you received those amounts, will increase the taxable gain (or decrease the loss) you make on disposal.
A cash distribution is the actual dollar amount distributed to you.
Under the AMIT rules, you will be assessed for tax on the amount attributed to you by BetaShares as a result of holding units in a Fund. This is the amount you must include in your tax return.
Details of the annual cost base adjustments will be included in the Attribution Managed Investment Trust Member Annual (AMMA) Tax Statement issued by BetaShares to investors via our unit registry provider Link Market Services.
Under the AMIT rules, a Fund can choose to distribute an amount of cash that is different to its attributed taxable income.
For the financial year ending June 2021, BetaShares, for certain funds, has determined to pay a cash distribution higher than the attributed taxable income and, oppositely, for certain other funds, retained investment exposure in the fund by distributing a lower cash amount than the attributed taxable income. For remaining funds, the cash distribution amount has been the same as the attributed taxable income.
The AMIT rules give BetaShares the flexibility to make a cash distribution that is different from the attribution amount.
An attribution amount may reflect not just income produced by the underlying investments of the fund, but also components that can change significantly from year to year, such as capital gains made by the fund, or profits from activities such as currency hedging.
In some years, simply passing these amounts through to investors in full in cash may result in distributions that are significantly higher or lower than the fund typically pays or that may be expected from the fund’s investment exposure.
In order to more appropriately reflect the expected distribution yield of the relevant fund, taking into account the fund’s investment objective, BetaShares may determine to pay a cash distribution that is different to the attribution taxable amount.
No, there will be no impact on the overall performance of a fund since performance assumes reinvestment of any cash distributions.
You will still be assessed for tax on the income of the BetaShares fund that is attributed to you. This is referred to as the Attribution Amount and must be included in your tax return.
In the event that the cash distribution is lower than the attributed taxable income, the amount generally should be sufficient for you to pay the tax liability.
While BetaShares has elected for all of our funds to be governed by the AMIT rules, it is possible that in a particular financial year a fund does not meet the eligibility criteria to be an AMIT. In that event, the AMIT rules would not apply and the fund’s distributions would be governed by the pre-existing, non-AMIT tax rules for managed funds.
If you have any further tax questions in relation to the AMIT regime and how it might affect your investment in BetaShares funds, we recommend you consult your tax adviser or refer to the information from the ATO website at https://www.ato.gov.au/General/Trusts/In-detail/Managed-investment-trusts/Managed-investment-trusts—overview/