The ATO has issued a worksheet aimed at first-time share and Exchange Traded Funds (“ETF”) investors. The ATO states that the growth of micro-investment platforms has helped a “record number of new investors enter the market”.
The release is mostly targeted at ETFs, which the ATO states is an increasingly popular investment option among “millennials”. ETFs provide investors with a Standard Distribution Statement (SDS) that breaks down what they, or their registered tax agent, need to declare in their tax return. When an investor disposes of units, the SDS will show the capital gains or losses made from the sale of the units which also need to be included in tax returns.
The release recommends that care be taken with distribution/dividend reinvestment, ie the CGT consequences can be easily overlooked. It contains a useful listing of all the documentation that investors should retain. [LTN 171, 6/9/21]
[Tax Month – September 2021] 3.10.21