What if I sold units during the year?

If you disposed of any units during the year, you will be required to calculate your Capital Gains Tax (CGT) liability (if any) with respect to these units. From 1 July 2014, you will no longer receive a Capital Gains Tax Statement or the Guide that accompanies the Capital Gains Tax Statement by default.

What information can help me with my tax return?

The Australian Taxation Office (ATO) has a helpline for personal tax enquiries, which is 13 28 61. In addition, the ATO has a number of publications which will help you understand what you need to do to complete your return.

What is a distribution?
A distribution from a managed fund represents your share of the income earned by a fund. Each fund may earn different types of income, for example dividends, interest and realised capital gains. Additionally, the income may be Australian sourced or foreign sourced. The funds are structured as unit trusts which means the types of income earned by the trust retain their character when they are distributed to you. The components of the distributions you received are detailed in Part B of your Annual Tax Statement. The components required to complete your tax return are shown in Part A of your Annual Tax Statement.
What are tax-deferred amounts?

Your distributions may include a tax deferred component. Any such component is detailed in Part B of your Annual Tax Statement, under "Other non-assessable amounts". The tax deferred component generally arises from capital allowances and depreciation amounts received from Listed Property Trusts. The tax deferred component is not included in your tax return for the year. However, the amount received reduces the cost base of your units in the fund, meaning that the amount is assessed as part of the capital gain when you eventually sell your units.

Why are the discount capital gains and CGT concession amount not equal?
The funds are eligible for the 50% capital gains tax concession. It could therefore be expected that the amount of discount capital gains and the CGT concession amount would be equal. However, from time to time, the funds receive distributions from Listed Property Trusts where the amount of discount capital gains and the CGT concession amount are not equal. As the components received by the fund retain their character when they are distributed to you (see "What is a distribution" above), this results in the discount capital gains and CGT concession amount being unequal.
Why is my management fee rebate assessable?

When a fund calculates the amount of income distribution, it takes into account a tax deduction for management costs charged to the fund at the rate which is detailed in the Product Disclosure Statement (PDS), which is reflected as a lower taxable distribution payment. When you receive a management fee rebate, the amount is assessed to tax in order to offset the larger tax deduction claimed by the fund. The effect of these transactions is that the net tax deduction (deduction in the fund less your assessable rebate) is equal to the net management fee charged to you.

Can I use e-tax?

The ATO allows you to prepare and lodge your tax return online, using e-tax which is available for download from the ATO website, www.ato.gov.au. The information provided in Part A of your Annual Tax Statement can be used to complete the worksheet in the section titled "Managed Funds" which is located in the "Income" section of e-tax. You should carefully read the instructions applying to the "Managed Funds" section, as there are circumstances when this section should not be used.

What if I'm not an individual taxpayer?

The information provided assumes you are an Australian resident individual taxpayer. If your investments in Vanguard funds are made through a Trust, Company or Superannuation Fund, you may need assistance from your accountant or tax adviser in the completion of your tax return. This information was prepared in good faith and we accept no liability for any errors or omissions.

What is capital gains tax?

Capital gains tax (CGT) applies to certain types of assets (generally including shares or units) that you sell. It affects your income tax liability because your assessable income includes your net capital gain for the income year.

What is the capital gains tax concession?

Where a gain qualifies as a discount capital gain, the law allows the taxable gain to be reduced by 50% for individuals. This means that tax is only paid on half of the capital gain.