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5 ways Sharesight helps Australian investors at tax time

by Angela Thompson, Sharesight

Sharesight’s valuable tax reports (built according to ATO rules) save Australian investors both time and money at tax time. Whether you file your taxes yourself, or via an accountant, read on to learn how Sharesight’s Australian-specific tax features not only help you complete your tax return, but also saves you time and money.

Important tax deadlines

31 March

Tax returns due for previous tax year if filing via accountant

30 June

Tax year ends

31 October

Tax returns due for previous tax year if filing yourself

Australian tax features within Sharesight

With all your trade data in one place, and dividends automatically captured, Sharesight makes tax-time a breeze. This is especially true for Australian investors, as 4 of the following 5 tax features were built specifically with them in mind:

#1 – Australian tax settings

Investors with a Sharesight portfolio tax residency set to “Australia” have a choice of the following tax settings which conform to Australian Taxation Office (ATO) tax reporting rules:

Tax Entity Type:

  • Individuals / Trust – CGT discount of 50 %

  • Self Managed Super Fund – CGT discount of 33⅓ %

  • Company CGT – discount of nil

For more information, check out our help page: Tax Residency of a Portfolio.

#2 – Australian Capital Gains Tax Report

The Australian Capital Gains Tax Report calculates capital gains made on shares as per the Australian Tax Office rules. You may run the report over any period in order to see:

  • The CGT position for all your holdings sold within the period.

  • Your CGT gains broken-up into short and long term, as well as your losses.

  • A summary of the short and long term gains and losses, as well as any capital gain or claimable loss.

Australian Capital Gains Tax Report

It allows you to specify the sale allocation method at the individual holding level to determine your optimum position, including:

  • First In, First Out (FIFO) – Sharesight assumes that you sell your longest held shares first.

  • Last In, First Out (LIFO) – Sharesight assumes that you sell your most recently purchased shares first.

  • Minimise Gain – Sharesight assumes that you sell shares with the highest purchase price first.

  • Maximise Gain – Sharesight assumes that you sell shares with the lowest purchase price first.

  • Minimise CGT – Sharesight assumes that you sell shares that will result in the lowest capital gains tax first. This method is more sophisticated than the ‘Minimise capital gain’ method because it takes into account the Australian CGT discounting rules.

#3 – Unrealised CGT Report

Another report built specifically for Australian investors is the Unrealised Capital Gains Tax Report. If you’ve incurred some losses, the report helps you determine how to offset your gains before the end of the tax year. The Unrealised CGT Report:

  • Displays the CGT position for all your holdings which are not yet sold

  • Breaks-up the CGT gains into short and long term, and shows your losses as well

  • Models the taxable income that would arise if the shares were sold on the report date

Unrealised Capital Gains Tax Australia

Like the Capital Gains Tax Report, the Unrealised CGT Report also allows you to specify the sale allocation method at the overall portfolio and individual holding level to determine your optimum position. See our article on tax loss selling for more information on how to use the Unrealised CGT Report.

#4 – Taxable Income Report

The Taxable Income Report is also very useful at tax time as it breaks down all dividends over any time period, organised by local/overseas income and separates out withholding tax and imputation credits from the net dividend.

Australian Taxable Income

As a bonus, the report now also provides field references to the relevant sections on the Australian Income Tax Return for Individuals and Income Tax Return for Individuals (supplementary section), as well as the totals required for the Income Tax Return based on non-trust and trust income. This will go a long way in helping investors to file their 2017-2018 returns.

Taxable Income Australia

For more information on this enhancement, see: Improved Taxable Income Report for Australian investors.

#5 – Portfolio sharing

Another essential tax-time feature is the ability to share your portfolio. Rather than printing-out and forwarding your Sharesight tax reports, you can securely share portfolio access directly with your accountant and/or financial advisor. With all your portfolio data in one place, they’ll have everything they need to prepare your tax documents. Available on all Sharesight plans, portfolio sharing ensures everyone’s on the same page and focusing on what really matters – not just at tax-time but throughout the year.

Simply the best portfolio tracker for Australian investors

Join thousands of Australian investors already using Sharesight to manage their investment portfolios. To get started for FREE, simply sign-up and import your shares and managed funds. Then watch as corporate actions such as dividends and stock splits are automatically incorporated. You can run valuable performance and tax reports (designed according to ATO rules). And there’s even a handy mobile app that lets you track your portfolio on the go!

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