Tax and EOFY toolkit

A range of resources to support you

EOFY 2021 Information

View all of the key tasks for June and their processing cut-offs.

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

The cut-off time is 5PM (Sydney time) across all tasks on the specified cut-off date.

Cut-off dates and times

Task 
 
Cut-off Date 
(5pm Sydney time)
Task Detail  Cut-off details
Direct Debit Requests

Tuesday 1 June
  • Amend June monthly direct debits
Dates are based on general processing times between financial institutions and the expected receipt of funds by Wealthtrac. The time taken for electronic transfers can extend up to four days in some cases and Wealthtrac will not be responsible for delays in receiving monies from external institutions.  
Pension Updates

Monday 7 June
  • Changes for June monthly pension run
    (final pension for the 2020/21 financial year).
Dates apply to complete requests. All requests and any outstanding information must be received by the cut-off date.
Remember: During the first two weeks of July, we’ll be calculating your clients’ 2021/22 pension. You won’t be able to make changes to your clients’ pensions during this time.
In-specie Asset Transfers (In and Out)

Wednesday 9 June
  • Managed Investments
  • Australian Listed Securities
Dates apply to complete requests. All requests and any outstanding information must be received by the cut-off date. 
Internal In-specie Asset Transfers (In and Out)

Wednesday 16 June
  • In-specie asset transfers between Wealthtrac accounts
Fee changes

Wednesday 16 June
  • All fee changes
  • Manual Account grouping changes
Closures 

Friday 18 June
  • All account closures
Switches 

Friday 18 June
  • Full or partial transfer from pension to super 
  • Full product switches (super to pension)
Adviser changes

Wednesday 23 June
  • All adviser changes
Deposits and Contributions

Wednesday 23 June
  • Cheque deposits
Dates are based on general processing times between financial institutions and the expected receipt of funds by Wealthtrac. The time taken for electronic transfers can extend up to four days in some cases and Wealthtrac will not be responsible for delays in receiving monies from external institutions. 
Deposits and Contributions 

Monday 28 June
  • EFT and BPAY contributions
Direct Debit Requests

Monday 28 June
  • One-off direct debit 
Withdrawals 

Monday 28 June
  • All withdrawal requests
Dates apply to complete requests. All requests and any outstanding information must be received by the cut-off date. 
Deduction notices 

Monday 28 June
  • For personal contributions made in the 2019/2020
    financial year
Spouse contribution splitting

Monday 28 June
  • Contribution splitting requests for 2020/21
    financial year
New Applications

Monday 28 June
  • All new applications 

Download and Print the EOFY cut-offs

To download and print the EOFY cut-off dates and times as a PDF, simply: 

  1. Right click anywhereon 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. 

Temporary reduction in pension minimum requirements

As part of their response to COVID-19, the Federal Government announced a 50% reduction to the annual pension minimum requirements for 2019/20 and 2020/21 financial years.

The Federal Government has recently extended the temporary reduction in pension drawdown rates to apply for the 2021/22 financial year.

The reduced annual pension minimums are the minimums we’ll apply when calculating your clients’ pension payments for the 2021/22 financial year. 

Wrap tax elections

From 13 May 2021 , if you have Wrap investment clients, you have until 6 July 2021 to make your online tax elections for 2020/21 tax reports.

This allows you to customise upcoming tax reports and make choices about CGT reporting and adviser fee deductions for your clients’ tax reports.

Tax reports are available online only and we’ll send you an email when new tax reports are available for your clients (from the end of July onwards). We’ll also email and SMS your client when their tax report is ready.

Please ensure your clients’ email and mobile information is kept up-to-date so they can receive these notifications.

If you’d like more information about tax elections, view the Tax elections flyer.

Tips to avoid processing delays

  • 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 2020/21 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

What are tax elections?

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.

Current tax elections

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.

Making elections for your clients

From adviser view:

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

Some more information on complex security holders and non-residents

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 2021.

Choosing the specific parcel selection option

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 wealthtrac@wrapinvest.com.au. We’ll get in touch to let you know of next steps.

Installment warrants

Waiting on product issuers for more information.

  • Westpac
  • Macquarie Bank Limited
  • Citi
  • RBS
  • UBS

Product issuer schedule

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

12H tax distribution schedule

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

Client materials

Delayed assets impacting tax reports

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.

Security Security name Reason for delay

AOG

Aveo Group

Expected timing of tax statement

APA

APA Grp

Expected timing of tax statement

LLC

LendLease Group

Expected timing of tax statement

 

We'll keep you informed of the 2021 tax report releases by emailing you and confirming which of your client’s reports are available.

If your client invests in non-Australian securities

A specific form may be required if your client:

  • invests in Australian-US dual-listed securities but is not a US citizen or US resident for tax purposes, most likely the Declaration of Foreign Residency (W-8BEN or W-8BEN-E form)
  • invests in securities listed or dual-listed in other nations, like Ireland
  • pays income tax in another jurisdiction, like the W9 form for US tax payers

Please note

For individual investors, only one W-8BEN form is required per individual, regardless of how many dual-listed securities are held. Where there are multiple beneficiaries, such as a joint account, a form must be completed for each beneficiary.

For entity investors, only one W-8BEN-E form is required per entity, regardless of how many dual-listed securities are held. Completed forms must be submitted directly to us for processing. Please do not send these directly to the share registry as they will not be accepted.

View more information on these forms below.

W-8BEN forms

General information on W-8BEN forms >

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

Individual Entity

W-8BEN form

W-8BEN-E form

 

Documents to help you complete the correct fields:

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)

What are SMSF audits?

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.

Independent audit report

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 2020.

Independent review reports

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 2020.

Review issued by KPMG after completion of all reports.

Important information

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.

Super Tax

The tax calculations and adjustments for the period 1 July 2019 to 30 June 2020 have been completed for clients' super and pension accounts.

Resulting tax adjustments were made to your clients' Cash Accounts/Hubs and appeared in their Cash Transactions Report. Please see below for further information about this adjustment.

Introduction

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

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)

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 2019 to 30 June 2020, and kept their accounts open until 22 February 2021.

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 2019/20 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 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.

Need more information?

Information for investors

1800 893 091

Email or speak with your financial adviser

Support for financial advisers

1800 893 091

Email or speak with your Business Development Manager