Tax and EOFY toolkit

Note: The cut-off time is 5PM Sydney time (AEST) across all tasks on the specified cut-off date to complete requests. This includes all requirements to be received and no outstanding follow-ups (eg submission of the request including client consent or approval, where required). Incomplete requests received prior to the cut-off and requests received after the cut-off will be processed on a best-efforts basis.

Check your client’s available cash

• Before submitting withdrawal or rollover requests, check the available cash for your clients to avoid any processing delays.

Ensure sufficient cash is available in your clients’ pension accounts

• This is to make sure pension payments can be made in June to satisfy any minimum pension requirements for the 2021/22 financial year. 

Check your super clients direct deposit facility

• Please make sure we can receive and process contributions correctly that are paid by funds transfer by checking your client’s direct deposit facility. If your client intends to make a contribution via EFT to a super account, it’s important the direct deposit facility is set up with the correct contribution type. You can change the contribution type by calling us.

Ensure your investment clients’ accounts are ready for tax reporting

• Please check correct cost base information is supplied where assets are being transferred in via in-specie transfer, to ensure accounts are ready for tax reporting. Incorrect or incomplete cost base information can impact the accuracy of reporting. Check you can supply all relevant cost base information to provide this for assets transferred into wrap accounts.

Submit paperwork as early as possible

• If you’re able to submit paperwork before the provided cut-off dates, there’ll be a greater chance that we can work with you to resolve any unexpected issues before the final cut-off dates.

Make sure you’re using the most up-to-date version of our forms available online

Remember

During the first week of July, we’ll be calculating your 2022/23 pension. You won’t be able to make changes to your pension during this time. 

Add as a reminder

You can also add these to your personal calendar as a reminder by clicking on the task.
 

Download and print the EOFY cut-off dates and times as a PDF 

1. Right click anywhere on the page when you are in the 'Cut-off dates and times' tab and select 'Print' or use short cut 'Ctrl+P'. 
2. Once the 'Print' window has opened, select 'Save as PDF' in your 'Destination' options. 
3. Click 'Save' and follow the prompts when the 'Save As' window appears.
   

Online tax elections let you customise each of your clients' tax reports to suit their individual needs. Learn more about the tax election process and tax report release in our Tax elections flyer.

Unless you make elections for this tax reporting year, our default elections will apply. You can read about our default elections and other key information in our Tax elections flyer.

From adviser view:

• for capital gains elections follow the path: Administration > Investment > Enter or maintain a CGT cost base method

While we do our best to distribute client 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:

• listed trusts
• international property trusts
• hedge funds
• geared investments
• instalment warrants.

Clients listed as non-residents for tax purposes are also expected to receive their Tax Report between October and December. We will advise you of any changes to this timeframe.

Non-residents and complex securities holders listed above may need to lodge their tax return through a tax agent to avoid any penalties that may apply if they do not lodge their return with the Australian Tax Office before 30 October 2022.

One of your tax election options is specific parcel selection, where you can specify the open parcels against which disposals can be allocated.

Please note that this may not be an option across all listed securities due to a corporate action event.

If you’d like to choose specific parcel selection and the security you wish to select isn’t displayed, this will be available if:

• There is a sale for a partial holding in the 2018/2019 tax year, and
• There exists multiple buy parcels available for selection (you can find this in the unrealised gains report).

To proceed with the specific parcel selection for securities not available online, please complete this spreadsheet with the details of the specific parcel(s) you’d like to nominate and send it back to us at mentor@wrapinvest.com.au. We’ll get in touch to let you know of next steps.

Waiting on product issuers for more information.

• Westpac
• Citi

In an effort to help you manage your client expectations around the availability of their Tax Reports, we have reached-out to Fund Managers and requested an indication of when they will be able to provide us their annual tax components.

The below schedule shows the dates that we expect to receive this information for each Fund. Please note that all Fund components need to be finalised and processed for an account before the Tax Report can be issued.

Once issued, you can view your client’s Tax Reports via the adviser website

Status Key:

• Outstanding – Fund Tax Reports have not yet been received by the Platform. If the information is not provided by the Expected Date, we will follow-up with them regularly. If we are informed by the Fund Manager of any material changes to the Expected Date, we will notify you via email and the Investment Menu News page.
• Received – Fund Tax Reports are being processed at a Platform level, and are being reconciled to individual accounts (On average, this process will take around 2 weeks)
• Audit – To provide assurance around the accuracy of your Tax Report, KPMG conduct an independent audit to ensure they remain consistent with the Assumptions and Principle outlined in the Tax Guide and that the information reported are consistent with the information from our source systems (On average, this process will take around 1 week).
• Finalised – All the Tax Components for this Fund have been finalised (On average, this process will take around 1 week).

Product issuer schedule - available here

This provides investors with the distribution components for managed investments available on investment menus. The information provided will assist investors with undertaking their own withholding obligations on behalf of their direct non-resident beneficiaries/investors.

12H tax distribution schedule

Tax Guide

Processing cut off calendar

Most tax reports will be available by the end of September. However, certain assets can cause delays in finalising some tax reports.

Here’s a list of these external assets which we expect will be delayed this year.

We'll keep you informed of the 2022 tax report releases by emailing you and confirming which of your client’s reports are available.

General information on W-8BEN forms >

Please have your client complete the applicable Declaration of Foreign Residency form below.

Documents to help you complete the correct fields:

• Guide to completing W-8BEN - Individual
• Guide to completing W-8BEN - Entity

If your client is invested in JAMES HARDIE INDUSTRIES PLC (JHX) – Irish DWT securities, please have them use this special form.

The following securities require a W-8BEN or W-8BEN-E form:

• News Corporation (NWS)
• RESMED (RMD)
• Vanguard All-World Ex-US Shares Index ETF (VEU)
• Vanguard US Total Market Shares Index ETF (VTS)
• Coronado Global Resources Inc (CRN)

Certain Product Issuers may distribute FITOs on foreign capital gains as well as foreign source income. We report all FITOs distributed on foreign source income and foreign capital gains in column T35 of the Detailed Report in the Tax Report (effective July 2021).

Where the Product Issuer provides a split of FITOs paid on foreign capital gains and foreign source income, we’ll provide this information as a note on the Tax Report. In reporting these amounts we make no determination about investors’ eligibility to claim FITOs.

Investors should always seek independent advice from their Tax Agent to determine their eligibility to claim FITOs.

Self managed super fund (SMSF) auditors are required to conduct both a financial and compliance audit, and subsequently express an opinion that the SMSF has:

• made no material errors in financial statements
• complied with the Superannuation Industry (Supervision) (SIS) Act and regulations.

To assist you and SMSF auditors in this process, the reports below highlight the effectiveness of our internal controls and ensure the information provided in investor statements contains no material errors.

Provided 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 2021.

• Independent audit report

Provided 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 2021.

• Independent review report

Review issued by KPMG after completion of all reports.

• KPMG independent review report

These reports may also apply to other account structures held through our platform and are not individually prepared for each SMSF client. We therefore recommend that you review the information provided, and assess whether it provides 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 to assets that are either held outside your account. 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.

To help you explain to your clients the principles and assumptions that we’ve used to calculate each member's notional tax return, we’ve released the

• online Superannuation Tax Calculation report (available as a client report)
• 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.

(The following are further explained in the Guide to Member Tax Calculation)

How would this affect my client?

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, otherwise their account is debited with a tax charge.

Which clients are included?

Clients affected are those who held active accounts during the period 1 July 2020 to 30 June 2021 and kept their accounts open until 5 February 2022.

What if my client's account is closed?

Members who leave the Fund prior to the year's annual processing date will not receive the benefit of any franking credits, foreign income tax offsets or any revenue/capital losses that have 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 of the relevant Product Disclosure Statement.

What if my client has switched between super and pension accounts during the financial year, or since 1 July?

If your client has switched between super and pension accounts during or since the 2020/21 financial year, the tax calculation will be completed on both of these accounts, with the transactions being processed to the open account.

What if my client has transitioned their super or pension accounts since 1 July?

If your client transitioned from PortfolioOne to Grow Wrap in December 2020, the tax calculation will still be completed on their accounts as they’re in the same super fund. The transactions have been processed as usual to their open account.

Why would my client be debited a tax charge?

Clients may be debited tax charges if they disposed of assets and realised capital gains as a result during the financial year.

What do my clients see?

Your clients will see different adjustments on their Cash Transactions Report depending on the type of account they hold.

For superannuation clients:

• Superannuation tax calculation adjustment (credit or debit) - the total net tax position
• Distributed tax benefit adjustment - the forfeited tax benefits from closed member accounts.

For pension clients:

• Distributed tax benefit adjustment - the franking credits applicable to the account.

For clients who have switched between super and pension:

• Distributed tax benefit adjustment (credit or debit) - the total net tax position in the closed super account
• Distributed tax benefit adjustment - the franking credits applicable to the open pension account.

Tax Guide

KPMG Independent Review Report

Product Issuer Schedule

Internal Controls (GS007)

Calculators

Woolworths (2012)

Corporate Actions

National Australia Bank Limited (2016)

Commonwealth Bank Australia Limited (2016)

Qantas Airways Limited (2016)

Westpac Banking Corporation (2016)

Independent audit report

Independent review report