Adviser tax elections – open online from 14 May 2012 until 13 July 2012
Advisers have until 13 July to set or adjust their online elections for the 2011/12 tax year on the Wrap website. Please refer to the Elections tab for more information.
Helping you with Self Managed Super Fund (SMSF) audits
SMSF auditors are required to conduct both a financial and compliance audit, and subsequently express an opinion that the SMSF has:
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made no material errors in the financial statements
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complied with the Superannuation Industry (Supervision) (SIS) Act and regulations.
To assist you and SMSF auditors in this process, Macquarie Wrap has made reports available that highlight the effectiveness of our internal controls and that the information provided in investor statements contains no material errors. Navigate to the Audit tab to view the reports.
Tax Report progress
As at close of business on 2 December 2011, we have completed 2011 Tax Reports for all Macquarie Wrap investors.
Our improved timeliness of tax statement delivery has been achieved without compromising statement accuracy.
Improvements that matter to you and your clients
We are committed to continuing to make improvements and offering solutions to you and your clients that minimise hassle and save you time.
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Faster report generation – on average, tax reports now take less than five seconds to generate online.
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KPMG Audit letter – in response to client feedback, we will be attaching the KPMG audit letter to online SMSF Tax Reports made available post 1 September 2011.
Further information
Contact your Training and Relationship Manager for further information or training in making your elections or call Adviser Services on 1800 025 063. Information regarding elections can also be found in the tax reporting flyer
2012 Resources - Coming soon
Macquarie Investment Manager and Investment Consolidator Tax Guide
Macquarie Investment Accumulator Tax Guide
Accountant's Tax Guide
Tax Report cover letter
Investor flyer inserted into IDPS July statements
KPMG Independent Review Report
Standard Distribution Statement
2012 Product Issuer schedule
The Product Issuer schedule helps you to manage your clients’ expectations regarding the timely delivery of their Tax Report by showing which funds have submitted their tax information.
The schedule will be regularly updated to show which fund managers will be providing their tax statements and when. Please note that these are estimated time frames only, and are subject to change.
Once we receive tax information from each of the funds in which your client invests, we can start to produce their Tax Report.
Product Issuer schedule (coming soon)
2012 the tax report explained
This detailed guide will help you and your clients understand all areas of the Tax Report. We recommend you print the Tax Report Explained guide out as A3 size to make the detail easier to read
Tax Report – explained (coming soon)
Instalment Warrants
2012 information regarding the tax assumptions made by the issuers of instalment warrants is coming soon.
2011 Super and Pension tax calculations
The tax calculations and adjustments for the period 1 July 2010 to 30 June 2011 have now been completed for clients super and pension accounts.
Where applicable, a tax adjustment has been made to clients’ Cash Account, and will appear in their Cash Transactions Report on Saturday 24 December, dated 23 December 2011. For further information on this adjustment, please refer to the frequently asked questions below.
To assist you in explaining to your clients the principles and assumptions that we have used to calculate each member's notional tax return, we have released:
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online Superannuation Tax Calculation report (available as a client report) , and
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Guide to Member Tax Calculation
The Guide to Member Tax Calculation is provided to you for information purposes only. No action is required from you or your clients.
Frequently asked Questions
(The following are further explained in the Guide to Member Tax Calculation)
What does this mean for members at an individual level?
If the annual tax liability of a member is less than the tax payments made during the year, we credit a refund to the member's cash account.
If the annual tax liability of a member is greater than the tax payments made during the year, a tax charge will be debited from the member's cash account.
Which clients are included?
This includes clients whose accounts were active during the period 1 July 2010 to 30 June 2011, and remain open as at Thursday 22 December.
What if my client's account is closed?
Members who leave the Fund prior to the year's annual processing date will not receive any franking credits, foreign income tax offsets or any revenue/capital losses that accrued. These tax benefits will be allocated on a proportional basis across all active accumulation accounts as at the processing date. For further information, please refer to the Annual taxation adjustments section in Part B of the PDS.
What if my client has switched between super and pension accounts during the period, or since 30 June 2011?
If your client has switched between accounts during or since the 2010/11 financial year, the tax calculation will be completed on both of these accounts, with the transactions being processed to the open account.
Why would my client be debited tax?
Clients may be debited tax where they have disposed of assets and realised capital gains as a result, throughout the last financial year.
What do my clients see?
Superannuation clients will see on their Cash Transactions Report:
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superannuation tax calculation adjustment (credit or debit) - the client's net tax position
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distributed tax benefit adjustment - forfeited tax benefits from closed accounts.
Pension clients will see on their Cash Transactions Report:
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distributed tax benefit adjustment - franking credits applicable to the client's account.
Clients who have switched from superannuation to pension will see:
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distributed tax benefit adjustment (credit or debit) - the client's net tax position in their previous super account, and
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distributed tax benefit adjustment - franking credits applicable to the client's pension account.
Adviser tax elections – open online from 14 May 2012 until 13 July 2012
Advisers have until 13 July to set or adjust their online elections for the 2011/12 tax year on the Wrap website.
Step 1: View current elections
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Unless you make new elections for the 2011/12 tax reporting year, we will carry forward your elections from the previous period
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If you have not previously made elections, or have created new adviser codes since July 2011, our default elections will apply.
Step 2: Make elections
The following information will guide you in making tax elections.
How to make your elections
From the Wrap website homepage:
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For mailing elections go to administration > adviser tax election
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For adviser fee elections go to administration > adviser tax election
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For capital gains elections go to administration > investment > enter or maintain a CGT cost base method
Any elections made during the previous tax reporting year will be carried forward to the 2011/12 year, unless you amend or set your elections through the Wrap website.
What if you don’t make an election?
If you do not amend or set your elections through the Wrap website, we will carry forward any elections you made during the previous tax reporting year. Where an election has not previously been made, our default elections will apply.
If you have changed or set up a new adviser code in the last year, please ensure you make elections for these new codes where required.
Elections information
Complex security holders and non-residents
While we do our very best to distribute your clients' Tax Reports as soon as possible, there are certain securities that can delay the process. If any of your clients hold one or more of the following securities they can expect to receive their Tax Report between October and December:
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Listed trusts
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International property trusts
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Hedge funds
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Geared investments
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Instalment warrants
If your client is a non-resident for tax purposes, we anticipate that they will receive their Tax Report between October and December. We will advise you of any changes to this timeframe.
Non-residents and holders of the above complex securities may need to lodge their tax return through a tax agent to avoid any penalties that may arise should they not have their return lodged with the ATO prior to 31 October 2012.
Helping you with Self Managed Super Fund (SMSF) audits
SMSF auditors are required to conduct both a financial and compliance audit, and subsequently express an opinion that the SMSF has:
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made no material errors in the financial statements
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complied with the Superannuation Industry (Supervision) (SIS) Act and regulations.
To assist you and SMSF auditors in this process, Macquarie Wrap has made reports available that highlight the effectiveness of our internal controls and that the information provided in investor statements contains no material errors.
What reports are available?
The reports provided are listed below:
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Independent audit report by the auditor to the Board of Directors of Macquarie Investment Management Limited on internal controls and other relevant accounting procedures as they relate to the specified annual investor statements for the year ended 30 June 2011
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Independent review report by the auditor to the Board of Directors of Macquarie Investment Management Limited on the specified annual investor statements for the year ended 30 June 2011
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Internal Controls (GS007), which is a report on Internal Controls over Custody, Investment Administration, Superannuation Administration and Information Technology. This also includes an independent assurance report conducted by the auditor on the description of controls, their design and operating effectiveness.
These reports may also apply to other account structures held under the Investor Directed Portfolio Service (IDPS) and Superannuation products.
Important information
Please note that these reports are not individually prepared for each individual Macquarie Wrap SMSF client. We therefore recommend that you review the information provided, and assess whether they provide sufficient evidence regarding internal controls and material accuracy of the annual investor statements in order to meet your specific auditor responsibilities.
Specific documentation from the SMSF’s trustee will be required when carrying out your audit obligations in respect of assets that are either held outside Macquarie Wrap or are ‘below the line’ assets. To assist you in determining the extent to which these reports may be relied upon, please refer to the Government’s Auditing and Assurance Standards Board website and the Guidance Statement GS009 Auditing Self- Managed Superannuation Funds
Further information
If you have any questions or require further information, please call 1800 025 063.
2011
Macquarie Investment Manager and Investment Consolidator Tax Guide
Macquarie Investment Accumulator Tax Guide
Accountant's Tax Guide
Tax Report cover letter
Investor flyer inserted into IDPS July statements
KPMG Independent Review Report
Instalment Warrants
Information regarding the tax assumptions made by the issuers of instalment warrants.
Westpac
Macquarie Bank Limited
Citi
UBS
ATO links
Tax Guides
Services managed by Macquarie Investment Management Limited (MIML)
Avenue Investment Service Tax Guide
Definitive Wrap Investment Account Tax Guide
PPS Investment Account Tax Guide
Macquarie Equity Portfolio Service Tax Guide
Private Portfolio Solution Investment Account Tax Guide
Suncorp Easy Invest Tax Guide
2010
Investment Manager Tax Guide
Investment Accumulator Tax Guide
Accountant's Tax Guide
Guide to Member Tax Calculation
Tax Report – explained
Tax Report cover letter
Investor flyer - inserted into IDPS July statements
KPMG Independent Review Report
Instalment Warrants
Information regarding the tax assumptions made by the issuers of instalment warrants.
Westpac
Macquarie Bank Limited
Instalment warrant tax assumptions:
Non-self funding prior to 8 Feb 2008
Self funding prior to 8 Feb 2008
Self funding after 8 Feb 2008
Notes from the Macquarie Bank Instalment Warrant tax statement:
“You should be aware that the enclosed Tax Statements:
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relate to transactions that occurred in the year 1 July 2009 to 30 June 2010 (for taxation information relating to earlier transactions, please refer to the Macquarie Instalment Tax Statement for the relevant financial year)
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list the deductible interest for Individual taxpayers and apportion the deductible interest for Self Managed Superannuation Funds (SMSFs) across the relevant financial years, and
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show Borrowing Fee, Share Cost Base, Put Cost Base and/or Notional Put Cost Base information where applicable.
You should confirm any tax treatment with your tax adviser before lodging your tax return.
Please refer to the Assumptions and the Explanation of Format and Contents outlined on our website for further information regarding transaction types and corporate adjustments. You should also refer to the Taxation Considerations section of the relevant Product Disclosure Statement.
If you have any queries regarding your Tax Statement, or for more information on Macquarie Instalments, please speak to your financial adviser or stockbroker. Alternatively, visit our website at macquarie.com.au/tax for further information and 30 June 2010 closing prices.”
UBS AG
Instalment warrant tax assumptions
Notes from the UBS Instalment Warrant tax statement:
“The information provided in this statement includes:
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A transaction history - transaction details of UBS Instalments that you held during the period from 1 July 2009 to 30June 2010
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Interest payment details - interest amounts paid by you to UBS during the financial year, including any interest reimbursements from sales.
As a UBS Instalment holder, you may be entitled to the following:
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Potential tax deductions for interest and prepayment of interest, in the financial year that the interest payment is made (subject to you satisfying certain conditions and requirements specified by the tax law)
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Potential tax benefits associated with dividends or distributions paid by the underlying shares, such as franking credits and tax deferred components (for example, in relation to property securities)
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Where the UBS Instalments are held for more than one year, discount capital gains tax treatment may be available to you on sale of your UBS Instalments or the underlying shares (for investors who are individuals, trusts or complying superannuation entities).
For a general discussion on the main Australian income tax consequences for Australian residents, refer to the Product Disclosure Statement that relates to your UBS Instalments.
While all care was taken in the preparation of this statement, UBS does not give taxation advice. We take no responsibility for the accuracy of the information contained in this statement or for the correct completion of your tax return. If you are in doubt about how to complete your tax return, or if your situation is complex or unusual, we recommend that you consult a professional tax adviser.
RBS Group (Australia)
Instalment warrant tax assumptions
Notes from the RBS Instalment Warrant tax statement:
“Given the complex nature of taxation, we suggest that you seek independent professional tax adviceabout the likely tax treatment of your investment before claiming a deduction for Interest Expense orBorrowing Fee in your tax return.
The Tax Section in the relevant Product Disclosure Statement also provides useful information that we suggest you read.
All Product Disclosure Statements are available upon request by calling 1800 450 005 or by visiting our website, www.rbs.com.au/warrants*, entering the Australian website and selecting the "PDS"heading.”
ATO links
2009
Investment Manager Tax Guide
Investment Accumulator Tax Guide
Accountants' Tax Guide
Tax Report Explained
KPMG Independent Review Report
Corporate Actions
Merger of St George Bank Limited and Westpac Banking Corporation
A merger was implemented by way of a scheme of arrangement under which all ordinary shares in St George were transferred to Westpac in exchange for Westpac issuing new shares to the ordinary shareholders of St George. The implementation date of the merger was 1 December 2008.
What was the consideration?
St George shareholders received 1.31 Westpac shares for each St George share they owned.
Tax implications
The capital proceeds received for each St George share are calculated as the market value of the Westpac shares received in exchange. The ATO has stated in a ruling (see link below) that they will accept this value to be the volume weighted average price of Westpac shares traded on the implementation date. Westpac has informed investors that this price was $17.19. St George shareholders will therefore be taken to have received $22.52 value for each share.
Investors are taken to have sold their St George shares on the implementation date and may crystallise a capital gain or loss.
Scrip rollover relief may be able to be applied to disregard any capital gain which arises in respect of the disposal. To be eligible for scrip rollover, an investor must satisfy the following:
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Shares were acquired 20 September 1985
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Investors would otherwise make a capital gain in respect of the disposal, and
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They could not otherwise have ignored the capital gain.
How Macquarie Wrap has reported the merger
The St George shares owned have been reconstructed into Westpac shares for investors who received rollover. The acquisition cost and purchase date of the St George shares will 'rollover' to the Westpac shares.
Investors who were ineligible for rollover will see a sale of St George shares and a corresponding purchase of Westpac shares on 1 December 2008.
Class ruling reference
Acquisition of Just Group Limited by Premier Investments Limited
On 23 April 2008, Premier investments offered to purchase all of the shares in Just Group. Just Groups shareholders could accept the offer by completing and lodging an acceptance form. On 10 October 2008, Premier Investments completed the compulsory acquisition of all remaining Just Group Shares
What was the consideration?
For each Just Group share held, shareholders received:
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cash of $2.245, and
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0.25 shares in Premier Investments.
Tax implications
The capital proceeds are $2.245 per share and the market value of the Premier Investments shares received. The market value of the shares received is worked out using the price on the day that the Offer was accepted or on the date of compulsory acquisition. The ATO has release a ruling (see link below) that details the relevant prices that they will accept on each day that the offer was open.
Investors are taken to have sold their Just Group shares and may crystallise a capital gain or loss on the date of acceptance or compulsory acquisition date.
Scrip rollover relief may be able to be applied to disregard any capital gain which arises in respect of the disposal. To be eligible for scrip rollover, an investor must satisfy the following:
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Shares were acquired 20 September 1985
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Investors would otherwise make a capital gain in respect of the disposal, and
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They could not otherwise have ignored the capital gain.
Where scrip rollover has been granted, any capital gain arising in respect of the action can be disregarded. However, an investor cannot obtain rollover for that part of the gain referable to the cash received under the takeover.
How Macquarie Wrap has reported the acquisition
An Investor eligible for partial rollover will see a portion of their Just Group shares sold on the day that they accepted the offer. The Premier Investments shares received will have the same purchase date as the original Just Group shares and a cost base equal to the cost base of the remaining portion of Just Group shares.
For Investors who cannot choose rollover we will report a sale of all their Just Group shares on the acceptance date and a purchase of Premier Investments shares on that same date.
Class ruling reference
Merger of Zinifex Limited and Oxiana Limited
Oxiana Limited acquired all of the ordinary shares in Zinifex.
What was the consideration?
Zinifex shareholders received 3.1931 Oxiana shares in exchange for each Zinifex share.
Tax implications
The capital proceeds received for each Zinifex share are calculated as the market value of the Oxiana shares received in exchange. The closing market price on the implementation date of 1 July 2008 was $2.47. Zinifex shareholders will therefore be taken to have received $7.89 for each share.
Investors are taken to have sold their Zinifex shares on the implementation date and may crystallise a capital gain or loss.
Scrip rollover relief may be able to be applied to disregard any capital gain which arises in respect of the disposal. To be eligible for scrip rollover, an investor must satisfy the following:
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Shares were acquired 20 September 1985
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Investors would otherwise make a capital gain in respect of the disposal, and
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They could not otherwise have ignored the capital gain.
How Macquarie Wrap has reported the merger
The Zinifex shares owned have been reconstructed into Oxiana shares for investors who received rollover. The acquisition cost and purchase date of the Zinifex shares will 'rollover' to the Oxiana shares.
Investors who were ineligible for rollover will see a sale of Zinifex shares and a corresponding purchase of Oxiana shares on 1 July 2008.
Class ruling reference
Santos Limited share buyback
Santos announced a buyback of its own shares as part of its capital management strategy on 21 August 2008. The buyback was conducted through a tender process that resulted in the final buyback price of $16.23. The shares were bought back on 6 October 2008.
What were the components of the buyback?
The buy-back price was $16.23 per share. This amount consisted of:
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a franked dividend of $13.25 per share, and
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a capital component of $2.98* per share.
Note that for capital gains tax (CGT) purposes, participants in the buy-back are deemed to have received $3.17 as the capital component of the buy-back price.
Tax implications
There are three tax consequences:
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the dividend and attached franking credit must be included in an investors assessable income for the year ended 30 June 2009 income year
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the investor will receive a refundable franking offset of $5.68 per share, and
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the sale of an investors shares is a CGT event that will result in a capital gain (or capital loss). Any gain or loss is to be included in an investor’s income tax return.
How Macquarie Wrap has reported the buyback
A sale of the Santos shares and a realised capital gain or loss will be reported on 6 October 2008. Investors will also received a franked dividend on that date.
Class ruling reference
Toll Holdings Limited in specie distribution of Virgin Blue shares
In July 2008 Toll Holdings Limited restructured their business by distributing the majority of their shareholding in Virgin Blue Holdings Limited to Toll shareholders.
What did the restructure involve?
Investors received 1 Virgin Blue Holdings share for every Toll Holdings share that they held. The shares were distributed to eligible recipients on 22 August 2008.
Tax implications
The restructure constitutes a demerger for tax purposes. This means that the shares received are not income and not required to be included in the assessable income of the recipient.
The original cost base of the Toll Holdings shares is apportioned across the Toll Holdings shares and the Virgin Blue shares received. The apportionment must be done on the basis of a reasonable approximation of the market values each holding.
Toll Holdings has advised shareholders of the necessary cost base split based on the relative market values of each security. Accordingly, the original cost base of the Toll Holdings shares is apportioned as follows:
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Toll Holdings shares 89.88%
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Virgin Blue shares 10.12%
How Macquarie Wrap has reported the distribution
Each investor will now hold shares in both Toll and Virgin Blue Australia. The cost base of the original Toll shares will be split across the two holdings in the ratio outlined above. The acquisition date of the Virgin Blue shares will match that of the Toll shares to which they relate.
No income or sale of shares will be reported.
2008
Investment Manager Tax Guide
Investment Accumulator Tax Guide
Accountants' Tax Guide
Tax Report Explained
KPMG Independent Review Report
2007
Investment Manager Detailed Tax Guide
Investment Manager Individual and Joint Accounts Tax Guide
Investment Manager SMSF Tax Guide
Investment Accumulator Detailed Tax Guide
Investment Accumulator Individual and Joint Accounts Tax Guide
Investment Accumulator SMSF Tax Guide
Accountants' Tax Guide
Tax Report Explained
Guide to Member Benefit Calculation - Superannuation
2006
Investment Manager Detailed Tax Guide
Investment Manager Individual and Joint Accounts Tax Guide
Investment Manager SMSF Tax Guide
Investment Accumulator Detailed Tax Guide
Investment Accumulator Individual and Joint Accounts Tax Guide
Investment Accumulator SMSF Tax Guide
