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Getting started with directshares Tax Tools Plus & Premium User

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1. Summary Realised Gains Carried Forward Losses Losses Generated in Period Total Losses Available to be offset Pre Offset Gain Losses Used to Offset After Offset Gain Non Discounted Gain x Indexed Gain Discounted Gain Select All lt lt lt Previous Next gt gt gt Security Description Adjusted Market Quantity Actual Cost Cost Value CGT Gain MIGX MACQUARIE INFR GROUP INTERNATIONAL LTD PART OF STAPLED SEC 1 000 1 166 90 1 166 90 1 266 37 99 47 Portfolio Total 1 166 90 1 266 37 99 47 Field Description q Click to export the what if model to an Excel spreadsheet 2 Click to close the What If Scenario screen and return to the Unrealised report 3 Type a Security Code and click Search to restrict the security details section to a single asset 4 This section is the same as the summary details shown in the Realised report When you click Apply What If Selections this summary will update to show you what the realised CGT position for the portfolio would be if the assets were disposed as selected 5 Click to select all securities A tick will display against each security See 8 below 6 Click to apply the changes to the securities selected See 8 below 7 Click to clear all selections and quantities you have made in columns 8 and 9 below 8 Select the securities that you want to apply to the what if model 9 Type the number of securities to be hy
2. Non renounceable rights A rights offer that may only be taken up or forfeited and cannot be traded on the market Off market transfer The transfer of shares between parties without going through the market place Off market transfers are executed through the use of an Off Market Transfer Form which is available on the website under Forms and Applications mini tab within the My Accounts tab Optimisation A numerical process that calculates the most beneficial after tax return on the realised gains losses on disposals Other gain A gain which is neither discounted nor indexed usually because it has been held for less than 12 months Par The nominal or stated value of a stock or bond set by the issuing company at the time of issue usually 100 Participating Preference Shares A share with a claim to profits ahead of ordinary shares These shares may also have access to any additional dividends to be paid after ordinary shareholders have received theirs Partly paid shares Shares which have been issued with only part of their par value paid e g shares may be issued with a par value of 1 00 of which only 50 cents has been paid with a further 50 cents still owing St george GLOSSARY Personal assets Means assets other than shares held through us which need to be created by you in the system All pricing income and any related adjustments to your Personal Assets are mai
3. 2 From the Portfolio Details gt Unrealised Report menu click Unrealised Report Detailed 3 Your portfolio s unrealised holdings that is the securities you have not yet sold as at the locked tax year date are displayed in the details section of the screen The report clearly shows the securities share parcels Parcels with no cost base show N A in the Open Amount column For example lt lt lt Previous Next gt gt gt Security Description Open Adjusted Market Amount Cost Value CGT Gain Losses Tax Date Open Date Indexed Cost Edit IAG INSURANCE AUSTRALIA GROUP LTD 2 000 00 2 000 00 1 735 00 0 265 00 31 07 2007 31 07 2007 2 000 00 I 1353 00 1 353 00 853 62 0 499 38 31 01 2007 31 01 2007 1 353 00 1 000 00 1 000 00 121 45 878 55 31 01 2007 31 01 2007 1 000 00 Edit AU INTREPID MINES LIMITED 538 44 538 44 350 00 188 44 10 03 2004 10 03 2004 538 44 lI 4 082 44 54 082 44 2 566 90 1 515 54 27 10 2004 27 10 2004 4 082 44 2 114 44 2 114 44 1 155 50 O 948 94 14 11 2004 11 11 2004 2 114 44 3 N A NA 1 05 NA NA 1 07 2007 NIA 4 To amend a securities in error click Edit beside that security code A warning message displays to alert you that by editing the security you will lock all transactions prior to the current tax year for the portfolio Logout Maintenance Portfolio Details Trading Activity Print
4. Maximise accelerate gains Mandatory Corporate Action The process of manually allocating sale parcels against buy parcels for CGT purposes This selection would only be used for historical matching or very rare circumstances when you wish to override Tax Tools optimisation process The process of allocating sales against buy parcels to maximise the taxable gain Means a Corporate Action which is not discretionary and affects all shareholders of the shares in question Method or CGT method The method describes the way the gain loss is calculated for CGT This can be indexed or discounted or neither if the asset has been held for less than 12 months The choice is defined by certain tax rules and dates of trading Minimise defer gains The process of allocating sales to buy parcels to minimise the taxable gain This is the most beneficial method and is the default for the Tax Tools system calculation Net Tangible Asset Calculated as the total assets of a company minus any intangible assets such as goodwill patents and trademarks less all liabilities and the par value of preferred stock Also known as net asset value or book value Non CGT gain loss A nominal gain which is not subject to CGT This is usually a gain loss for an income instrument such as a term deposit where income tax rules apply Non discounted gain A CGT gain that has been calculated by a method other than discounting
5. Tumover Wednesday 03 March 2010 09 58 AM There are reporting exceptions Please check Te Records Processed With Exceptions schedule Available as a print report only although transactions can be viewed online from the Transaction History screen Refer to Transaction history on page 20 st george OTHER SYSTEM REPORTS Estimated cash flow This report shows the predicted cash flow for the twelve months after the recalculation date based on previous income data for the current portfolio holdings Available as a printable report only Estimated Cash Flow ok remium Praemium pro factis Portfolio 1001020 928 2394 1221 Portfolio 126 Date From 01 Jul 2009 Through 30 Jun 2010 Tax Type Individual Description Imputation Credit September 25 09 2009 25 00 2009 BHP BILLITON LTD testing BHP BILLITON LTD testing Total for September October 2 10 2009 Total for October March 17 03 2010 17 03 2010 Total for March 8 04 2010 Total for April Income Security Date Trust Dividends sTW SPDR S amp P ASX 200 FUND 8 07 2010 Total for STW Total Trust Dividends Total Dividends Not Paid INSURANCE AUSTRALIA GROUP LTD BHP BILLITON LTD testing BHP BILLITON LTD testing INSURANCE AUSTRALIA GROUP LTD Income accrued but not paid This report shows income for distributions that have been declared but not yet paid For ASX listed stocks this repor
6. ASX Listed z i a ie Amp 4 500 510 30 15 450 00 6 68 10 020 00 0 89 5 430 00 35 15 450 00 4 49 Anz 5760 21 1418 121 776 49 21 71 125 049 60 11 06 3 273 11 269 6 252 48 5 i AXA 5500 4676 25 718 00 6 48 35 640 00 3 15 9 922 00 38 58 1 017 50 285 sHP 827 so SO 44 92 34 667 84 307 34 667 84 0 00 1 386 71 4 8s 165 so so s298 S49170 0 04 491 70 000 8 25 1 68 cea 1 000 535 00 35 000 00 53 00 53 000 00 4 69 18 000 00 51 43 4 240 00 8 Fo 7547 3 7144 28 032 68 5 49 41 433 03 367 13 400 35 47 80 2 056 56 4 96 uc 1 000 20 00 20 000 00 9 85 9850 00 0 87 10 150 00 50 75 s0 The report defaults to a summary of all your portfolio s holdings as at the recalculation date You can also print the report from this screen by clicking Print st george YOUR TRADING ACTIVITY VALUATION amp PERFORMANCE The following table describes the columns on this report Column Description Security Code The Security Code for the security This may also be the personal asset code Value Date The date on which the Unit Value price was taken Quantity The quantity held at the recalculation date Unit Cost Unit Cost is the average of the cost base for all the parcels of that holding Adj Cost The Adj Cost is the cost adjusted for any corporate actions or subsequent transactions Note that subsequent disposals alone will affect your adjuste
7. Plus or Premium please call us on 1300 133 500 between 8am and 8pm AEST Monday to Friday R st george GLOSSARY GLOSSARY Active This is the status of a Tax Tools portfolio You can view portfolio states in the main Portfolio List screen A portfolio should be made active once all historical information has been entered and reconciled to known holdings Once a portfolio is in the active state it will be updated daily with closing prices and any mandatory corporate actions that affect the holdings After offset gain The CGT taxable gain after losses have been offset against gains in the portfolio As at The date the portfolio has been recalculated to All screen and printed reports will be for the As At date ASX code The code used by the Australian Securities Exchange to identify listed companies Auto generate These are transactions that automatically update the portfolio by system processes rather than manual input Examples would be a DRP or a bonus issue These update the portfolio when the Recalculate To button is activated Beneficial owner The beneficiary of the asset regardless of the name in which it is recorded under Bonus share plan Usually a plan whereby shareholders may elect to receive all or a portion of the dividend in shares instead of cash You should refer to announcements by the company or contact the company to obtain further information regarding the rules and operation of the p
8. Reports System Management i By editing the opening positions of your portfolio you will be locking all transactions prior to this tax year Are you sure you want to proceed Proceed Cancel Opening position date 30 06 2009 Note if you have recalculated the portfolio to a date other than the locked tax year date for the portfolio your portfolio will become locked at that recalculation date For example if your portfolio is locked for the tax year 2008 09 and you recalculate to 30 06 2010 your portfolio will be locked at this new date when you click Proceed This means transactions prior to this new locked date can no longer be edited using the Transaction History screen 5 Click Proceed to accept this date shown onscreen as the Opening position date as the locked tax year date for the portfolio The starting parcels of the security on the Unrealised screen become editable No parcels with a tax date later than 30 06 2009 are displayed For example st george YOUR PORTFOLIO AND ITS HOLDINGS Opening position date 30 06 2008 Total quantity 11667 Security Description TaxDate Quantity Actual cost Tax deferred IAU INTREPID MINES LIMITED 10 03 2004 1 000 538 44 lau INTREPID MINES LIMITED 27 10 2004 7 334 4 082 44 IAU INTREPID MINES LIMITED 11 11 2004 3 330 52 11444 IAU INTREPID MINES LIMITED NWA The fields included are Field Description Security The ASX security c
9. are key elements of Tax Tools All your current assets must be re constructed at the transaction level to correctly calculate future CGT activity and to accurately measure performance For ASX listed stocks buy and sell transactions as well as voluntary corporate actions such as share purchase plans and share sale facilities that you have participated in are re created by Praemium Tax Tools has built in processing that applies mandatory corporate action activity such as bonuses dividends share splits and consolidations to each listed holding Reinvested shares or units for ASX listed securities are automatically included by Tax Tools as well To view your portfolio s transactions in Tax Tools 1 From Trading Activity click Transaction History Your portfolio s transaction display for example Export to Excel Upload Add 1 Select Type Sell Buy Sell Buy Open Buy Buy Row s Description ity COST RST Total Amount AMP AMP LTD 28 05 2009 5 272 26 360 00 ANZ ANZ BANKING GROUP LTD 1 07 2008 20 82 1 374 12 Adjustment 12 09 2008 K 0 18 02 2009 Adjustment 13 07 2009 0 BHP BHP BILLITON LTD testing 21 02 2010 2 00 10 000 00 Buy Opt to 21 02 2010 10 00 1 000 00 BHPIOC BHP BLT CTW JUNOS5 6001 W 21 02 2010 2 00 200 00 CFS0002AU Chifley Investment Absolute Return Fund 21 02 2010 9 99 50 000 00 Note the report only displays those transactions known by direc
10. have questions There is the possibility that amendments to your portfolio could result in an update to your tax report for the previous tax year This may for example be because a listed property trust reports its distributions later in the year If this happens we ll send you an email to let you know a new report is available You will need to accept our Tax Tools Plus amp Premium Terms and Conditions contained within your subscription wizard to access this service You acknowledge that directshares has contracted with Praemium to provide Tax Tools to you The descriptions contained in this User Guide of the way in which Tax Tools Plus and Premium operate have been provided to us from Praemium st george CONTENTS CONTENTS 06 Getting started 06 06 07 What Tax Tools Plus and Premium does Logging on and passwords System time outs o8 Finding your way around tax tools 08 08 09 09 10 11 12 12 13 13 13 20 20 21 23 25 25 25 28 28 28 30 Menu buttons Saving and searching Moving from one screen to another Sorting on screen information by headings Your portfolio and its holdings Recalculating your portfolio Your portfolio s status Unknown cost bases and inaccurate tax parcel allocations or dates Checking if you have any unknown cost base errors Updating cost base tax lot allocations or tax dates Locked tax year date Your trading activity valuation and performance Transac
11. m g R st george OTHER SYSTEM REPORTS OTHER SYSTEM REPORTS This section describes further reports that are available to Tax Tools Plus and Premium users Most reports are available within Tax Tools onscreen and as printable reports Tax Tools Plus and Premium reports The following reports are available to all Tax Tools Plus and Premium users Tax Summary The Tax Summary report is presented in a table format that includes e Income summary split into income from Trust and Non Trust including CGT distributions and e CGT Summary It is available as a print report only Tax Summary premium 5 Pragmium pro factis Portfolio 1010252 928 2394 1221 Portfolio 3306 Date From 1 Jul 2009 Through 30 Jun 2010 Tax Type Super Fund Income Summary Non Trust Income Trust Income Interest 1 562 78 Australian TFN Withheld 0 00 Franked 0 00 Rental Income 0 00 Unfranked 0 00 Non CGT Assets 0 00 Unfranked CFI 0 00 Short Trades 0 00 Interest 0 00 Other Aust Income 0 00 Dividends Total 0 00 Australian Franking Credits 0 00 Franked 146 642 66 TFN Withheld 0 00 Unfranked 19 774 21 Foreign Unfranked CFI 0 00 Foreign Income 0 00 Total 166 416 87 Foreign Attributed FIF 0 00 Franking Credits 62 846 84 Foreign Attributed CFC 0 00 TFN Withheld 0 00 Total 0 00 Listed Investment Companies Foreign Income Tax Offsets 0 00 LIC Attributable Amount 1 047 01 LIC Deduction 349 00 Monda 30 Ma 2011 10 05 AM Page 1 of 18 Th
12. of a number of share parcels For example you may own 10 000 BHP shares that were purchased over time in parcels of 5 000 2 000 and 3 000 shares respectively When you decide to sell some of these shares Tax Tools will under the Minimise Defer Gains disposal allocation method choose to dispose of the parcels that result in your portfolio incurring the least CGT based on the Australian tax legislation for determining CGT and not as they may apply to your personal tax circumstances It is possible for you to manually override this default setting in order to maximise your gain or to select a specific parcel of shares to dispose of first This procedure and the tax optimisation methods employed by Tax Tools are described in more detail in the Tax Tools Beyond the Basics user guide and in the Best Fit Offsetting section below Realised CGT reporting The Realised report displays the CGT gains and losses made on disposal of assets for the tax year as at the date at which the portfolio has been recalculated The summary table at the top section of the report shows taxable gains and losses for the period The Realised report comes in both a Detailed and Summary version We ll describe the Detailed version below as the Summary version is a subset of the same information st george TAX REPORTING The Realised report is available as e an onscreen report from Portfolio Details gt Realised Report gt Realised Report Deta
13. organised stock exchange Unrealised gains Profits which have not yet been received because while the price of the asset has risen the owner has not yet sold Voluntary Corporate Action Means a corporate action which is discretionary That is a shareholder must elect to participate in the corporate action If the shareholder does not respond to the issuer of the shares in relation to the corporate action within the nominated timeframe the shareholder will not be able to participate Tax Tools treat mandatory corporate actions which give shareholders a choice between two or more alternative options for example some take overs or dividends as voluntary corporate actions The directshares service is provided by ETRADE Australia Securities Limited E TRADE Australia ABN 93 078 174 973 AFSL No 238277 a Participant of the ASX Group at the request of St George Bank A Division of Westpac Banking Corporation ABN 33 007 457 141 St George Execution settlement and clearing is through E TRADE Australia St George does not represent E TRADE Australia Similarly E TRADE Australia does not represent St George Investment advice is not provided to online directshares clients 2003 E TRADE Financial Corporation and E TRADE Australia All rights reserved st george
14. reports Ability to add other Asset Cost base calculations Investment activity data classes that incur CGT Reports take into account updated daily e g Property Cash and not only share positions but Applies tax implications of Collectables held outside dividends received too mandatory corporate actions your directshares portfolio to your portfolio Products Income from Equities As per Standard As per Standard reported on Options and Warrants Income on Managed Funds Global Shares and securities settled through a margin loan are not included The ability to report on the other asset classes that incur GST e g Property Cash and Collectables held outside your directshares portfolio Pricing Free Subscription service Subscription service st george COST BASED CALCULATIONS WILL ONLY BE MADE ON SECURITIES BOUGHT VIA directshares TRADING PLATFORM With Tax Tools Plus amp Premium please remember This document is intended to be a description of how Tax Tools Plus amp Premium functions Plus and Premium use pre defined algorithms to calculate tax liability based on current Australian Tax Legislation as it is understood by Praemium Pty Ltd and for the assets held within a portfolio at a given time In addition it attributes the effect of corporate actions data as supplied by third parties to those holdings as it is known at the time The outcome of these calculations does not
15. the tax regime they are held under For individuals the gain is discounted by 50 Distribution Money or its equivalent paid by a trustee to a beneficiary of the trust Dividend imputation The tax credits passed on to a shareholder who receives a franked dividend Under provisions of the Income Tax Assessment Act franking credits entitle investors to a rebate for tax already paid by an Australian company Dividend reinvestment plan DRP DRP is where the shareholder elects to receive new shares in lieu of cash for dividends distributed by those companies which offer a DRP The tax date for shares received is the payment date of the dividend These shares are often issued at a discount and no brokerage is paid Employee share plan ESP Equity warrants A scheme established by an employer to provide tax advantaged share ownership for its employees as part of their remuneration packages If such shares are issued at a discount price the value of the discount is assessable for tax purposes at the time of issue Equity call and put warrants are issued over securities such as shares in companies Ex dividend date Four business days before the company s Record Date To be entitled to a dividend a shareholder must have purchased shares before the ex dividend date Exchange traded option ETO Option contracts where counterparts are novated and which are bought and sold on the options market operated by AS
16. 8 41 457 14 0 00 41 457 14 Realised Summary Total Realised Paid Income Gain Loss for Period 0 00 2 864 74 2 864 74 Normal Equities Gain Loss for Period 44 321 88 The report is split into two sections e Ordinary Equities Portfolio which shows the summary for normal equity trading activity e Turnover Statistics The third section of the report shows the turnover statistic There are trading details such as the total value of buys and sells for the period st george OTHER SYSTEM REPORTS Printing reports Most reports are printable Please refer to the Print Reports menu To create any report for a single portfolio 1 Click Print Reports 2 Complete the following fields Field Description Notes Select file format Portable Document Format PDF is the only PDF is useful for viewing and printing the available option report on any computer operating system or printer Format style Top Title With Image is the only available format style Report for This ensures all important notices and This option is mandatory customer disclaimers are displayed on the report Print to duplex Select if the report should be printed on both sides of the paper Select Select the checkbox beside the report s you want to view or print From date to date Type the reporting from and to dates This will include data from between these dates in the report Reports that do not include date range fields will prin
17. 8 74 1 822 19 RIO TINTO LTD 4 500 208 125 00 211 185 00 3 060 00 TELSTRA CORPORATION LIMITED 100 384 00 376 00 8 00 WARATAH COAL INC CHESS DEPOSITARY INTERESTS 1 000 1 500 00 1 740 00 240 00 International Shares 0 0 0 Domestic Listed Property 0 0 50 Domestic Direct Property 0 0 0 International Listed Properly 0 0 0 International Direct Property 0 0 0 E Domestic Fixed Interest 63 196 17 63 616 01 International Fixed Interest 0 0 Cash amp Equivalents 42 734 20 42 732 31 Options 0 0 Other 50 0 lt lt lt Previous Next gt gt gt Click Export to Excel to export the data in this report into an Excel spreadsheet The printed version of this report available from the Print reports menu includes the following controls Asset Class Summary as at 9 Jan 2009 Display Bar Graph X You can specify whether you want to display the asset class breakdown as a bar graph pie chart or use no graphic at all st george OTHER SYSTEM REPORTS Asset allocation The Asset Allocation report compares a portfolio s asset make up to the asset class target that is assigned to it Asset class targets can be set by Tax Tools Premium users to measure their portfolio s holdings against the pre determined benchmark Please refer to the Tax Tools Premium user guide Asset Allocation K r mium Premium pro jactis Portfolio 1001007 92823941221Portfolio 120 Date As At 20 Jan 2010 Tax Type Ind
18. Getting started with directshares Tax Tools Plus amp Premium User Guide Yo St george CHOOSE THE TAX TOOL THAT BEST HELPS YOU MANAGE YOUR TAX ONLINE Tax Tools Standard Tax Tools Plus Tax Tools Premium What is it Free summary report on Interactive subscription An interactive subscription income and realised CGT service with information and service with a range of tools to report on realised amp reports and features to unrealised CGT manage your CGT as well as the ability to collate many of your assets in one place Who could New and regular investors Regular and more active Very active investors benefit that do not settle trades investors Day traders through a margin loan Day Traders Investors with large Investors with large portfolios portfolios Investors with other asset classes Benefits Simple straight forward Additional functionality As per Plus reports and reports for proactive Allows management and Keep track of dividends management of tax therefore better control of Easy to download and implications your wider CGT liability provide to your accountant Accessible all year round not just end of year Potential to save you and your accountant s time in preparing your tax return Features Single downloadable PDF What if scenarios to aid As per Plus Useful annual Income and your decision making 14 in depth reports CGT summaries Up to 8 in depth
19. HOLDINGS YOUR PORTFOLIO AND ITS HOLDINGS Tax Tools builds your investment portfolio based on your historical trading transactions as held at directshares However the only transactions visible to you in your portfolio for Tax Tools purposes are those that have occurred since your portfolio s starting position Your starting position is defined as the start of the financial year prior to the financial year in which you upgraded your subscription to Tax Tools Plus or Premium For example if you upgraded from the Standard Tax Tools service on 12 June 2010 all investment transactions that have occurred since 1 July 2008 your portfolio s starting position are included and visible in your portfolio Existing directshares Customer who upgraded this year 1209 07 01 07 08 12 06 10 07 08 08 09 A A directshares Portfolio Starting Upgrade Trading Account Position subscription date commenced Transactlon s visible in Transaction History screen As your portfolio is built on the known transactions and holdings it might not accurately reflect your entire share holdings For example there may be assets that you own that directshares does not know about ie issuer sponsored shares or assets held on another broker s CHESS Sponsorship or e the actual cost base of some holdings There is a chance that directshares may not know the original cost of securities that you currently own This may be because the stock was purch
20. NATIONAL AUSTRALIA BANK LTD 14 158 58 37 47 16 930 00 44 8 2 771 42 RIO TINTO LTD 425 322 66 70 53 436 275 00 72 35 10 952 36 lt lt lt Previous Next gt gt gt The following table describes the fields shown on the picture above Field Description 4 Shows the total portfolio performance as a percentage gain or loss for the period defined by the dates specified 2 Type the date range for which you want to report and click Recalculate Note this does not recalculate the portfolio but refreshes the data for the given date range 3 Click Asc Stock ascending or Desc Stock descending to sort the assets alphabetically Personal assets whose codes start with will display first in a list sorted from A to Z 4 Clicking Asc Perf or Desc Perf will toggle the list between sorting the assets from worst performed to best performed on a percentage basis and vice versa 5 Clicking Asc Gain or Desc Gain will toggle the list between sorting the assets from highest to lowest gain in value and vice versa 6 Clicking Desc Impact and Asc Impact will toggle the list between largest impact and smallest impact on the portfolio and vice versa 7 Click to export the displayed data to Excel 8 Select Capital amp Income to base the performance measurements on both capital and income for the selected period Capital Only to base the performance measurements on the value of the portfolio s capi
21. Note the field changes from Purchase Date to Open Date if the stock in question is a Short Sell Purchase Open Date the date of the original purchase of the parcels Sale Close Date is the disposal date Note the field changes from Sale Date to Close Date if the stock in question is a Short Sell The Adjusted Cost is the cost adjusted for any corporate actions or subsequent transactions Indexed Cost typically this will be the same as the open amount however if the security was acquired prior to 30 09 1999 and was held for more than one year the cost base is increased by applying an indexation factor based on increase in CPI Non CGT Gain Loss screen report or Pre CGT Gain Loss print report includes details for holdings for which CGT does not apply for example fixed interest short sells traditional securities or holdings that were purchased before the CGT legislation applied Gross Gain shows the gain before any discounting or indexing is applied Other Gain applies if the asset was disposed within 12 months of acquisition Indexed Gain shows the gain between the indexed cost and the disposal value if applicable Discounted Gain includes amounts that have had the discount value applied If the portfolio is for a company then the discounted gain will be zero Notes displays any notes entered for that transaction st george TAX REPORTING Best fit offsetting As the Tax Tools Disposal Allocation Method is i
22. X Expiry expiry date or expiration The date on which all unexercised options or warrants in a particular series expire First in first out FIFO The process of allocating sale parcels against the oldest buy parcels for CGT purposes i e first bought first sold Fixed income investment An investment that pays a fixed amount of interest such as bonds and other debt based instruments and repays the principal amount on maturity These are generally not subject to CGT but assessable for income tax in the year they produce income Franked dividend A dividend paid by a company out of profits on which the company has already paid tax The investor is entitled to an franking credit or reduction in the amount of income tax that must be paid up to the amount of tax already paid by the company Franking credit Franking credits which are passed onto shareholders who have received franked dividends in relation to their shareholdings See also Dividend Imputation Gain gross or nominal Global asset The difference between the current market value or disposal amount and the original amount paid for the asset before CGT rules are applied An asset where Tax Tools maintains pricing distributions and corporate action activity in terms of tax implications across all services Holder identification number HIN A unique reference allocated by a stockbroking firm to an individual or entity when they buy sh
23. al Est income Domestic Shares 354 252 93 349 774 89 4 478 04 76 66 15 705 89 International Shares 0 0 0 00 0 Domestic Listed Property 0 0 0 00 0 Domestic Direct Property 0 0 5 0 00 0 International Listed Property 0 0 0 00 0 International Direct Property Domestic Fixed Interest 63 196 17 63 616 01 13 94 1 810 24 International Fixed Interest 0 0 i 0 00 50 Cash amp Equivalents 42 734 20 42 732 31 9 37 2 432 07 Options 0 0 0 00 0 Other 0 0 00 0 lt lt lt Previous Next gt gt 0 0 0 00 0 When you click 6 the detailed holdings for that asset class display For example St george OTHER SYSTEM REPORTS lt lt lt Previous Next gt gt Asset Class Description Qty Cost Value Gain Loss ofTotal Est Income al Domestic Shares 354 252 93 349 774 89 4 478 04 76 66 15 705 89 AMP LTD 1 500 15 450 00 8 490 00 6 960 00 1 86 720 00 AXA ASIA PACIFIC HOLDINGS LTD 5 500 25 718 00 27 885 00 2 167 00 6 11 1 223 75 BHP BILLITON LTD 827 0 26 960 20 26 960 20 5 91 1 887 21 BLUESCOPE STEEL LTD 165 0 664 95 664 95 0 15 19 95 COMMONWEALTH BANK OF AUSTRALIA 1 000 35 000 00 28 950 00 6 050 00 5 FOSTER S GROUP LTD 1 350 1 335 00 7 128 00 5 793 00 LEND LEASE CORPORATION LTD 1 000 20 000 00 7 570 00 12 430 00 NATIONAL AUSTRALIA BANK LTD 1 000 37 250 00 20 890 00 16 360 00 ONESTEEL LTD 100 0 267 00 267 00 QANTAS AIRWAYS LTD 2 927 9 490 93 7 66
24. ares if that broker is nominated as the sponsor in CHESS Holding statement A statement issued to uncertificated shareholders showing the number of shares held and details of any trades made since the issue of the previous holding statement st george GLOSSARY In specie transfers The transfer of an underlying investment from one wrap to another where there is a change in the legal custodian but not a change in the beneficial owner Inception In Tax Tools this refers to the date of the first transaction of the activity it relates to e g a DRP will be either from the first buy or when the company first offered the DRP whichever came first Indexed cost This applies to assets which were acquired after 20 September 1985 and before 30 September 1999 and held for at least 12 months where the cost base has been adjusted increased by applying the indexation factor per the CPI Note An indexed cost cannot be used in determining a capital loss Indexed gain This applies to the difference between the disposal value and the indexed cost base Issuer sponsored Uncertificated securities that are administered by the issuer of those securities rather than a broker or financial institution Losses used to offset gain For CGT purposes a capital loss can be offset against a capital gain If applicable offset amounts can be reviewed in the Tax Tools Realised CGT Report Manual selection
25. ased using another broker or the stock may have been transferred to directshares from issuer sponsorship or another broker You can include this information in your portfolio with Tax Tools We strongly recommend you check the details of your portfolio and update it as described in the following section If the data in your portfolio is inaccurate your tax and performance reports will also be inaccurate Note on share or tax parcels Tax Tools refers to shares purchased for a specific security at the same time and price as a tax parcel Most investment portfolios consist of a number of share parcels For example you may own 1 000 BHP shares that were purchased over time in parcels of 500 200 and 300 Tax Tools uses these parcels to calculate and optimise your portfolio s CGT This is described in more detail in Tax reporting on page 25 a amp george YOUR PORTFOLIO AND ITS HOLDINGS Recalculating your portfolio Tax Tools advanced processing capability ensures that all closing prices and mandatory corporate actions are applied to the holdings in your portfolio overnight Your portfolio is then recalculated based on this latest information to that day s date This updates your portfolio s value and overall tax position Recalculating your portfolio to another date All Tax Tools portfolios and calculations are automatically recalculated overnight However as Tax Tools Plus or Premium subscribers you have the abi
26. ctice to use your mouse when using Tax Tools t St george FINDING YOUR WAY AROUND TAX TOOLS Moving from one screen to another The default number of lines of data that display in a screen is 30 If there is more than one screen of information the following buttons appear at the top and bottom of the screen orme Click Next gt gt and the screen will display the next 30 lines of information Click lt lt Previous to return to the previous page of information Click Last to go to the last page of data As most screens are sorted by default from last entry to first entry clicking this button will take you to the first entries for that screen Type a page number in the Page box then click Go to move directly to that page of information Sorting on screen information by headings All columns of information in Tax Tools have headings Some of these headings are also buttons and when you click the button the information on the screen is re sorted For example the following transactions are sorted in alphabetical order by Security Cost Per Unit 0t Amount 2 10 2005 1 000 34 89 34 890 00 TELSTRA CORPORATION LIMITED 15 05 2005 1 200 4 90 5 880 00 3 Cost Per e Quantity Unit Total Amount TELSTRA CORPORATION LIMITED 1 200 4 90 5 880 00 BHP BILLITON LTD 1 000 34 89 34 890 00 You can then click Asc Date to re sort the transactions by ascending order a amp george YOUR PORTFOLIO AND ITS
27. d cost but do not affect your unit cost For example if the original cost base was 1 000 for 1 000 units and a subsequent disposal transaction for 500 units at 600 is applied then the adjusted cost base is 500 that is the 500 remaining units times the original cost of 1 00 per unit Or if the original cost base was 1000 for 1000 units and a return of capital of 100 is applied prior to the current As At date then the adjusted cost is 900 Unit Value Unit Value is calculated as the value divided by the quantity Value The Value is calculated based on the closing price for the asset on the value date For ASX listed securities this will be the closing price for the recalculation date For personal assets it will be the price entered that is most immediate to the recalculation date Value Value is calculated as the value of this asset in relation to the value of the portfolio Gain Loss Gain Loss is the nominal difference between the total value and the total cost of this asset Gain Loss Gain Loss is the gain or loss expressed as a percentage over the adjusted cost base of the asset Est Income Est Income is an indicative field only calculated by Tax Tools based on the income generated by the asset over the past twelve months Est Yield Est Yield is the estimated income as a percentage of the market value of the asset You can click the symbol beside a holding to drill down into t
28. directshares investor who upgraded to Plus or Premium in the current calendar year Existing directshares Customer who upgraded this year 12 09 07 01 07 08 30 06 09 12 06 10 07 08 08 09 09 10 directshares Portfolio Starting Lock Tax Year Upgrade Trading Account Position Date subscription date commenced Transaction s visible in Transaction History screen Cost base caf be edited via tha Transaction History screen If you need to update the cost base or tax parcel allocations for transactions that occurred in a locked tax year you can do it by recalculating the portfolio to the last locked tax date and using the Unrealised Report function In the following diagram the portfolio has been recalculated back to the 30 06 09 which allows you to edit tax parcel information for parcels prior to this date by using the Unrealised report Existing directshares Customer who upgraded this year Recalc portfolio to this date 12 09 07 01 07 08 30 06 09 12 060 07 08 08 09 09 70 rN Portfolio Starting Lock Tax Year Upgrade Postion Date subscription date commenced Transaction s visible in Transaction History screen Cost base can be edited via the Transaction History screen Cost base can be edited via Unrealised report a amp george YOUR PORTFOLIO AND ITS HOLDINGS These dates are slightly different for investors who upgrade in the next calendar year as the following example shows Existing dir
29. e transactions with an unknown cost base Please refer to the Unknown cost bases and inaccurate tax parcel allocations or dates on page 12 You can now view the recalculated portfolio and you can see the date to which the portfolio was last recalculated at the top of the screen For example 928 2394 1221 Portfolio 120 Processed to 30 06 2009 st george YOUR PORTFOLIO AND ITS HOLDINGS Your portfolio s status Your portfolio displays on the Main Portfolio List screen For example Portfolio 1003551 928 2394 1221 Portfolio 986 Processed to 30 06 2009 Previous login time 13 Jan 2010 10 31 Portfolio Type Process From ASAt Market Value Status Active 928 2394 1221 Portfolio 1003551 936 Descnption AUSENCO LIMITED 02710 2000 Could not find stock to Sell 1500 AAX on 2 10 2009 ARROW ENERGY LTD 14082008 insufficient stock to Sell 2280 AOE on 14 02 2002 BIOTA HOLDINGS LTD 20 10 2008 Could not find stock to Sell 4750 BTA on 20 10 2008 CARDNO LIMITED ORDINARY 0200 2000 Could not find stock to Sell 2100 CDD on 2 09 2000 IRESS MARKET TECHNOLOGY LTD Insufficient stock to Sell 801 IRE on 1 10 2008 Individual Inception 30 06 2009 645 644 43 The status of your portfolio displays as highlighted above If the portfolio s status is Active this means that as far as Tax Tools is concerned no errors exist for your portfolio If you disagree with this calculated starting position you can amend the cost base i
30. ectshares Customer who upgraded next year 120907 01 07 08 30 0603 420141 07 08 08 09 A directshares Portfolio Starting Upgrade Trading Account Postion amp Lock pamin nced Tax Year Date Karnata Transaction s visible in Transaction History screen Cost base can be edited via Unrealised report Cost base can be edited via the Transaction History screen If you are a new directshares customer the starting position of the portfolio will be when you first commenced trading with directshares or transferred holdings to our sponsorship and your tax year is not yet locked New directshares Customer 12 0640 08 09 09 10 10 11 New subscription date A directshares Trading Account commenced A Portfolio Starting Postion Cost base can be edited via the Transaction History screen Transaction s visible in Transaction History screen st george YOUR PORTFOLIO AND ITS HOLDINGS To update the cost base of your pre 01 07 09 parcels As mentioned above assets tax parcels that were purchased prior to 01 07 09 the locked tax year date cannot be amended in the Transaction History screen They can however be updated using the Unrealised report by completing the following steps 1 Recalculate the portfolio to 30 6 2009 This recalculation filters out parcels that were purchased on or after 01 07 2009 that is securities purchased after the date at which the portfolio is locked
31. eed to close and reopen the application and log back in Once you have logged in you should see your portfolio on the main Portfolio List screen For example H sc george premium Potoka 4301582 MR WAYNE THOMAS MULLEN Processed to 20 01 2010 SON 012010 Previous login time 20 Apr 2010 10 26 Portfolio 1D Portfolio Name Portola Type Procees rom ASM Market Vale MR WAYNE THOMAS LLEN 4301502 u Indmdusi inception 20 01 2010 19 622 91 R st george FINDING YOUR WAY AROUND TAX TOOLS FINDING YOUR WAY AROUND TAX TOOLS This section discusses how to navigate within Tax Tools Menu buttons The menu bar in Tax Tools contains a Main button a Back button and a series of menus designed to provide access to the screens you can use within the application _ogout Back Maintenance Port EN rading Activit Print Reports syu J f Back To return to a previous screen use the Back button on the application menu bar rather than the Back button on your internet browser Main portfolio list Click Main on the menu bar to display the main portfolio list screen hiain Saving and searching In general when you need to activate a process such as Save or Search in Tax Tools you need to actually click the button Because this is a web based application Tax Tools will not respond when you press Enter on your keyboard In some circumstances the application may stop working when you press Enter so it is good pra
32. ements and more For many it s a retrospective activity only done at the end of the year which can mean missing out on optimising their tax position for the year directshares Tax Tools is an information management tool designed to make tax time easier For the proactive investor Tax Tools Plus and Premium assists by applying all the latest market closing prices and mandatory corporate actions using its complex overnight processing engine against investments held by us This provides daily up to date portfolio reconciliations where you can view an up to date picture of your portfolio s value performance and capital gains tax CGT positions Upgrade to Tax Tools Premium and other assets which attract CGT such as property and collectables can also be included to provide a consolidated tax position on an overall investment portfolio Logging on and passwords When you subscribe to Tax Tools you will receive an email confirming your subscription You will then need to 1 Log into the directshares website 2 Navigate to My Portfolio Tax Tools 3 On the right hand side there will be a Tax Tools login control box Enter your trading password and select Logon st george GETTING STARTED WITH TAX TOOLS System time outs As a security feature Tax Tools will automatically log you out of the application if you have not completed an action within Tax Tools in the past 30 minutes In this instance you will n
33. enu Refer to Unrealised CGT reporting on page 28 for more information Portfolio valuation by security Available as a print report and onscreen from the Portfolio Details menu Refer to Portfolio valuation by security on page 21 for more information Cash book The report shows all cash book entries for the specified range of dates and the selected cash books Refer to The Tax Tools cash book on page 41 Available as a print report and on screen st george OTHER SYSTEM REPORTS Trading transactions The report shows the trading transactions as recorded in Tax Tools for a range of dates You can nominate whether the report includes mandatory corporate actions or just normal buy and sell transactions Trading Transactions JE remium Pr mium pro factis Portfolio 1001007 928 2394 1221 Portfolio 120 Date From 1 Jul 2008 Through 31 Jan 2010 Tax Type Individual Avg GST Disposal Date Amount Price Brokerage GST Refunded Method Notes Broker AMP LTD 28 May 2003 26 360 00 527 0 00 0 00 0 00 Minimise Defer ETrade ANZ BANKING GROUP LTD Buy 01 Jul 2008 66 1 374 12 20 82 0 00 0 00 0 00 Corp Action 12 Sep 2008 21 0 00 0 00 0 00 0 00 0 00 AcTransactionID 549553243 Sell 18 Feb 2009 100 0 00 ooo 0 00 Corp Action 13 Jul 2009 1 042 0 00 0 00 0 00 0 00 ECT SPP Share Purchase Plan Reference 5704 3364721 AcTransactionID 663083152 Total Brokerage amp GST Total Acquisitions Total Disposals
34. ere are reporting exceptions Please check the Records Processed With Exceptions schedule st george OTHER SYSTEM REPORTS Non Trust Income This section of the report includes income generated from non trust investments The information in this section is a summary of the details included in the Realised Unrealised and income reports and covers income from Listed Property Trusts and Managed Funds Trust Income This section of the report includes income generated from investments held through trusts including CGT from trust distributions The information in this section is a summary of the details included in the Realised Unrealised and income reports CGT Summary The CGT Summary shows e prior year losses current year losses and loss offsetting e a breakdown of gains from trust distributions and asset disposals to be used for loss offsetting Income The Income report shows the portfolio s income as recorded in Tax Tools for a range of dates You can nominate whether the dates are tax dates or income dates Available as a print report and onscreen from the Trading Activity gt Income amp Expenses menu The report shows the portfolio s income as recorded in Tax Tools for a range of dates specified in the controls You cannot start the report from a date prior to the portfolio s starting position Using the controls you can nominate whether the dates are tax dates or income dates The following
35. example shows the report generated based on the tax dates R st george Tax Security Date OTHER SYSTEM REPORTS Income Transactions Taxable 4 remium Praemium pro factis Portfolio 4820018 928 2394 1221 Portfolio 155616 Date From 1 Jul 2009 Through 30 Jun 2010 Tax Type Individual Foreign Income Tax Other Aust Assessable Tax Free Tax Income Exempt Deferred 2 Other Exp Franking Credit Total CGT Gains Foreign Income 4 DRP Amount Interest Amount Franked Amount Unfranked Amount Income Amount Tax Withheld Non Trust Income ANZ ANZ BANKING GROUP LTD 18 12 2009 Total for ANZ BOQ 01 12 2009 BANK OF QUEENSLAND LTD Total for BOQ CROWN LIMITED 26 10 2009 CWN Total for CWN LLC 20 11 2009 380 00 380 00 LEND LEASE CORPORATION LTD 1 00 Total for LLC MQG 16 12 2009 Total for MQG 1 00 MACQUARIE GROUP LIMITED 516 00 516 00 Total Non Trust Income Trust Income Tuesda 28 June 2011 04 50 PM 2 078 40 1 410 40 Page 1 of 7 There are reporting exceptions Please check the Records Processed With Exceptions schedule Realised Available as a print report and onscreen from the Portfolio Details gt Realised CGT menu Refer to Realised CGT reporting on page 25 for more information Unrealised Available as a print report and onscreen from the Portfolio Details gt Unrealised CGT m
36. he holding s transactions Note this only displays those transactions known by directshares since the start of the financial year prior to the financial year in which you upgraded your subscription to Tax Tools Plus or Premium Recalculating the portfolio permanently updates the portfolio while viewing a snap shot of the portfolio gives you a picture of the value of your portfolio as at a date in the past but does not recalculate the portfolio To view a snapshot of the portfolio as at a specific date 1 From Portfolio Details click Portfolio Valuation by Security 2 Type the date in the As At field For example Exportto Excel Print as at 23 12 2009 Note if the As At date is later than the recalculation date of the portfolio and there have been unconfirmed corporate actions in the intervening period you will not be able to view the portfolio valuation for that date The As At date needs to be at or prior to the recalculation date in this instance st george YOUR TRADING ACTIVITY VALUATION amp PERFORMANCE 3 Click Search The screen will refresh with the portfolio values for that date Note you cannot view your portfolio s value as at a date prior to the portfolio s starting position Holding performance Premium only The Holding Performance report shows the performance of the individual holdings in the portfolio over a specified date range This report is available as e an on screen report f
37. history After reconciling your portfolio s opening position Tax Tools is able to administer and maintain your portfolio automatically There are three exceptions to this a Unknown cost bases if you were to transfer stock in from another broker you will need to update the cost base information within Tax Tools b Personal assets which need to be maintained by you c Voluntary corporate actions whereby you should inform us or the Registry of your choice If you fail to make a choice the Registry may provide you with the default option Once this has occurred your holding will be updated in CHESS which will have the effect of your portfolio within directshares being correspondingly updated Tax Tools will then apply this update within its calculations This section discusses how Tax Tools can be used to attempt to optimise your tax position and a couple of the comprehensive tax reports that are available to help you understand the tax implications of your investment portfolio Disposal allocation method Central to the Tax Tools tax optimisation engine is the concept of a transaction s disposal allocation method By default your Tax Tools portfolio is set to minimise or defer gains This is because the primary objective of most investors is to maximise their profit Tax Tools refers to shares units purchased for a specific security at a point in time and specific price as a share parcel Most investment portfolios consist
38. ients Tax date This is the effective date for tax calculation purposes and may vary to the transaction date For instance a bonus issue date will bear the tax date of the original purchase of shares it relates to Tax deferred distribution Tax on certain types of income distributed from trusts can be deferred until the holder disposes of the units The cost base is reduced by the tax deferred amount thus increasing the taxable CGT gain Tax exempt Income or gain which is not taxed Tax Parcel Shares purchased for a specific security at the same time and price st george GLOSSARY Tax type The tax rules to be applied depending on the entity the assets are held in One of four choices must be selected when setting up a portfolio The tax rules are different for each type Traditional security Broadly a security that does not bear deferred interest and is not capital linked Any gain or loss is not subject to CGT legislation but rather treated as income in the year it is earned Common traditional securities are bonds and debentures Unfranked dividends Share dividends paid by companies which are not subject to Australian tax or paid by Australian companies but before the introduction of dividend imputation in 1986 Recipients of unfranked dividends are subject to tax at their normal marginal rate Unlisted securities Refers to securities which are not listed on the ASX or any other
39. iled or e a paper based report called Realised available from Print Reports Both Detailed and Summary reports are available as printable reports The numbered fields in the following example are described in the table on the next page R st george TAX REPORTING Previous login time 09 Jan 2009 09 47 Hide CGT Summary Export to Excel Summary Realised Gains Carried Forward Losses 2i Generated in Period Total Available to be offset 3 5 000 35 000 Pre Offset Gain Losses Used to Offset After Offset Gain gE than 1 Year Gain 5 a ra jon Discounted Gain lt Discounted Gain 1 781 Net Loss EJ lt lt Previous Next gt gt gt Sale Open Close Non CGT Indexed Discounted Security Description Quantity Amount Amount CGT Gain Losses Tax Date OpenDate Close Date indexedCost GainiLoss GrossGain Other Gain Gain Gain Notes CBA COMMONWEALTH BANK OF austell 1 000 35 000 00 0 0 35 000 00 10 11 2008 10 11 2008 11 12 2008 35 000 00 0 0 0 0 RIO RIO TINTO LTO 750 34 687 50 38 250 00 1 781 25 o 15 07 2005 15 07 2005 9 10 2008 534 687 50 0 3 562 50 3 562 50 1 781 25 lt lt lt Previous Next gt gt gt Field Description 1 Carried Forward Losses are any losses from the prior years that have been carried forward using Trading Activity gt Carried Forward Losses 2 Gains Losses Generated in Period shows the total amount of gains or losses incurred from asset disposals during the tax yea
40. inancial year when tax details are made available These amounts are automatically amended when the trusts year end tax statements are available Adjusted tax reports are regenerated and made available at this time These should be compared to the tax statement you receive from the issuing entity as Tax Tools cannot determine individual receipts Only current tax year income transactions appear By using the search function on the Income screen you can display all income transactions since the start of the financial year prior to the financial year in which you upgraded your subscription to Tax Tools Plus or Premium For example if you upgraded from the Standard Tax Tools service on 21 June 2010 you can search income transactions that have occurred since 1 July 2008 Premium users can enter income that applies to personal assets that is assets other than ASX listed securities held with us into Tax Tools manually Refer to Personal Assets in the Tax Tools Premium user guide To view income entries 1 From Trading Activity gt Income amp Expenses click Income Details R st george GETTING HELP GETTING HELP Additional features and functions are described in the following two user guides which can be downloaded from the My Portfolio Tax Tools section of the website e Tax Tools Beyond the Basics e Tax Tools Premium For help with any of the functions included in this guide or any other questions on Tax Tools
41. ividual Asset Target HE Min Target Percentage MJ Actual Portfolio Percentage J Max Target Percentage Wednesday 03 March 2010 10 23 AM There are reporting exceptions Please check Ne Records Processed With Exceptions schedule Note Asset Allocation Targets must be defined for the portfolio on the Maintenance gt Portfolio Management gt Portfolio Details screen in order for this report to display Asset Allocation Target Refer to Asset Class Targets in the Tax Tools Premium user guide a amp george OTHER SYSTEM REPORTS Trading summary report The Trading Summary report is available as e an onscreen report from Portfolio Details gt Trading Summary or e a paper based report available from Print Reports The report is a summary of the portfolio s profit and loss as a result of trading activity for the financial year up to the recalculation date It is not a tax report The report measures the portfolio s nominal profit or loss on both realised and unrealised positions Trading Summary J preemium Prammiam pro factis Portfolio 1001007 928 2394 1221 Portfolio 120 Date From 1 Jul 2009 Through 20 Jan 2010 Tax Type Individual Normal Equities Portfolio Unrealised Sum 30 Jun 2009 20 Jan 2010 Cost 0 00 0 00 _ Total Unrealised Value 32 419 34 73 876 48 Gain Loss for Period Unpaid Income Gain Loss for Period Gain Loss 32 419 34 73 876 4
42. lan Bonus shares Additional shares issued by the company to existing shareholders for free usually in a predetermined ratio to the number of shares already held The tax treatment for CGT purposes is determined by the purchase date of the original shares the bonus shares are issued on Capital gain loss The difference between the sale price of a capital asset and its CGT cost base Capital gains tax CGT Tax on the profit from the sale of capital assets such as shares Capital growth An increase in the value in a capital asset such as shares Capital growth is realised as a capital gain when the asset is sold for more than its purchase cost Carried forward losses Unallocated capital losses incurred in previous financial years that have been carried forward to a subsequent financial year Company options A contract by which a company is bound to issue new securities usually at a set exercise price to enable the acquisition of future equity in that company The option holder is entitled but not required to exercise them Consolidation A reduction in the number of a corporation s shares outstanding that increases the par value of its stock or its earnings per share The market value of the total number of shares market capitalization remains the same Contract note A written document confirming a transaction between us and you which details the costs type and quantity of shares traded Convertible note A loan
43. lculate your portfolio s performance that is how much your portfolio has appreciated or depreciated over time and realised and unrealised CGT positions Realised CGT is calculated by Tax Tools based on your investment disposals made during a financial year Unrealised CGT is a report that allows you to view what your tax position would be if you were to dispose of some assets But Tax Tools cannot accurately calculate these without knowing how much you paid for the assets in the first place Checking if you have any unknown cost warnings To check if there are transactions in your portfolio that have an unknown cost base try running a report using the Print Reports menu Refer to Printing reports on page 4o If there are any realised holdings with an unknown cost base the report will include a Records Processed with Exceptions report section Unrealised holdings with an unknown cost base will display with an Actual Cost of N A on the Tax Tools Unrealised Report For example Records Processed With Exceptions oh remium Premium pro tactis Portfolio 1001009 928 2394 1221 Portfolio 121 Date As At 20 Jan 2010 Tax Type Company Description Transaction Date Type Details TELSTRA CORPORATION LIMITED 30 06 2008 Waming This tax parce has an unknown cost base TELSTRA CORPORATION LIMITED 12 06 2008 Waming This tax parce has an unknown cost base Updating cost base tax lot allocations or tax dates The method you use in Tax T
44. lity to recalculate your portfolio to any date from the opening starting position of your portfolio This allows you to check on your portfolio s value and performance at any point in time Recalculating the portfolio will update all trading activity and recalculate CGT corporate actions and income and reconfigure all reports to the recalculation date Note you cannot recalculate your portfolio to a date prior to the opening starting position of your portfolio The opening starting position of your portfolio is restricted to the 1 July in the financial year prior to the year in which you upgraded your Tax Tools subscription to a Plus or Premium service For example if you upgraded your Tax Tools Subscription to the Plus or Premium service on the 12 June 2010 the earliest date to which you can recalculate your portfolio is 4 July 2008 To recalculate the portfolio You can recalculate your portfolio from any screen in Tax Tools that contains a Recalculate To box 1 Type a date in the Recalculate to box or leave Today as the default Use DD MM YYYY format Portfolio 1001007 928 2394 1221 Portfolio 120 Processed to 30 06 2009 EL 30 06 2009 Previous login time 18 Feb 2010 10 13 Portfolio 4001007 2 Click Recalculate to The system will perform the processing If the portfolio is in error a system message displays some tips for researching the problem If the status of your portfolio is Active with errors you may hav
45. made to a company at a fixed rate of interest with the right to be either redeemed e g repaid by the company for cash or converted into ordinary shares at a predetermined date or Convertible securities Fixed Income Securities which are convertible by the holder or automatically by their terms of issue into equity securities Corporate action A corporate action is an action taken by an entity for the purpose of giving an entitlement to holders of a class of the entity s securities Examples of corporate actions include rights issues bonus issues dividends or other payments or offers under a buy back scheme There are two types of Corporate Actions voluntary and mandatory st george GLOSSARY Cost base The adjusted purchase price of an asset as defined for CGT purposes Custodian An organisation that holds but doesn t own assets on behalf of other people Deferred settlement A settlement in which the obligation to settle on a trade date plus three business days T 3 basis is deferred until the time following the dispatch date that ASX fixes Discounted gain One of the two types of capital gain which can be chosen for the disposal of assets acquired before 21 September 1999 and the only type available for assets acquired after that date provided that the assets concerned have been held for at least 12 months The gain is subject to a discount for tax calculation purposes according to
46. n date An error displays if the data you enter does not comply with the system s validation checks For example System Alert A The sum of the tax lots does not equal the original adjustment quantity 6 Click Update Tax Lots The system displays a Tax Lots Updated message 7 Click OK The original transaction is now updated with the new cost base information The Cost Base Unknown field now displays as False 8 Recalculate the portfolio again 9 Check the portfolio no longer contains any The tax parcel has an unknown cost base errors in the Records Processed with Exceptions report to do this see page 13 R st george YOUR TRADING ACTIVITY VALUATION amp PERFORMANCE YOUR TRADING ACTIVITY VALUATION AND PERFORMANCE Transacti Tax Tools is automatically kept up to date based on your trading activity through directshares When you buy or sell with directshares Tax Tools updates your portfolio automatically overnight When your asset s prices go up or down you can watch your portfolio s valuation increase or decrease and its performance improve or decline The types of corporate actions that are handled by Tax Tools are discussed in more detail in the Tax Tools Beyond the Basics user guide Tax Tools contains many reports that allow you to view your trading activity and the effect of market movements on your portfolio Some of these are described below on history Transactions
47. nformation and tax parcel allocations For example there may still be some tax parcels within your portfolio that have an unknown cost base You can amend the cost base of these parcels using the functionality described in the following section If the status is Active with errors this means that the portfolio is still operational in Tax Tools but that important data might be missing for the transactions from which the portfolio was built which have the potential to affect the accuracy of the holdings You can review these errors by running a Tax Tools report and viewing the Records Processed with Exceptions section of the report For example Records Processed With Exceptions Portfolio 1001052 928 2394 1221 Portfolio 141 Date As At 20 Jan 2010 Tax Type Company Transaction Date Details If the status is Recalc Error you will be unable to recalculate the portfolio and should contact the directshares Customer Assistance Team Unknown cost bases and inaccurate tax parcel allocations or dates The first thing you should check in Tax Tools is whether all your assets are accurately represented in your portfolio as your starting position has been calculated based on your directshares investment portfolio st george YOUR PORTFOLIO AND ITS HOLDINGS Some of the transactions in your portfolio may have unknown cost bases The original cost of the investment holdings that you own is required for Tax Tools to accurately ca
48. nitially set to Minimise Defer Gains for your portfolio then to minimise the taxable gain Tax Tools will switch methods where there is a loss to offset and the optimal calculation is to offset this loss against gains in the following order e gains less than one year old e indexed non discounted gains e discounted gains Unrealised CGT reporting The Unrealised report comes in both a Detailed and Summary version This section describes the Detailed version as the Summary version is a subset of the same information The Unrealised report both Detailed and Summary are available as e an onscreen report from Portfolio Details gt Unrealised Report or e a paper based report called Unrealised available from Print Reports Both Detailed and Summary reports are available as printable reports The report displays the potential CGT gains and losses if you were to dispose of an asset on the date the portfolio has been recalculated to The report uses the market value of the assets as at the recalculation date The columns of data on the screen are the same as those described in the Realised report What if scenarios The Unrealised report allows you to look at what the impact on the portfolio would be from a CGT perspective if hypothetically assets were disposed Click What If to display the What If scenario screen For example R st george TAX REPORTING Exportto Excel Close What if _ MIGX beach
49. ntained by you The details you provide for these assets are included in all the Tax Tools Premium reports Personal assets can include rental properties cash books artwork a wine collection managed funds and traditional securities such as bank bills term deposits and fixed interest securities Portfolio list This is Tax Tools main screen and lists all the portfolios that the user has access to Portfolio type The tax type for the portfolio will be individual partnership superannuation company or trust Different CGT tax rules apply to each Pre offset gain CGT Gain either realised or unrealised before any losses have been applied Preference shares Shares that rank before ordinary shares in the event of liquidation of the issuing company and that usually receive a fixed rate of return Process from date This is the date from which auto generated transactions are applied It is usually the first trade date in a Tax Tools portfolio and is therefore entitled inception Realised gain The CGT gain received after the sale of an asset e g shares units Recalculate to Record date The activity of updating the portfolio and recalculating the CGT position by clicking the Recalculate To button situated on all activity screens The date by which a shareholder must officially own shares in a company to be entitled to a dividend Redeemable preference shares Shares that can be re
50. ode Description The ASX s descriptive narration for the security code Tax date The date recorded in Tax Tools as the transaction s tax date Quantity The number of units held in each parcel Actual cost The actual amount paid for the share parcel Tax deferred Any distributed tax deferred amounts 6 Update the parcel s cost as required You can also update parcel quantity tax date and tax deferred amount if required 7 To add additional parcels for holdings sponsored by us if required complete the extra blank fields and click Add for this security 8 Click e Save to save your edits Note Tax Tools will check that your edited parcel quantities equal the number of shares held for that security as at 30 06 09 Tax Tools displays an error message if the new details do not pass the system s internal validation rules For example Error You have allocated 100 units more than the total number of units held for this security Please amend the quantity of units held e Cancel to return to the last saved position for the share parcel or st george YOUR PORTFOLIO AND ITS HOLDINGS 9 Repeat steps 4 to 9 for each security with no cost base information or with inaccurate information 10 Recalculate the portfolio to 01 07 2009 41 Check the portfolio no longer contains any The tax parcel has an unknown cost base errors in the Records Processed with Exceptions report to do this see page 13 Y
51. ools to update tax parcel information depends on the date of the transaction This is because Tax Tools will lock all transactions for parcels that have occurred in financial years in which tax reporting has already been completed The tax parcel information for transactions flagged with an unknown cost base that occurred e after the locked date of the portfolio can be updated directly from the Transaction History screen e before the locked date of the portfolio can be updated using the Unrealised screen Locked tax year date At some point in each financial year Tax Tools locks the prior tax year for the portfolio This normally occurs around March and you will be informed by directshares of the exact date 2 weeks prior to the locking when all tax reporting from the previous financial year is complete The portfolio is locked at this point in time to ensure that the portfolio s tax position remains the same as that which has already been reported Locking the tax year means that while all transactions are visible back to the original portfolio s starting position you cannot edit the tax parcels using the Transaction History gt Tax lots function for the previous financial year You may update tax parcels within the Unrealised Report function described below st george YOUR PORTFOLIO AND ITS HOLDINGS In the following diagram you can see the starting position and the date from which the portfolio is locked for an existing
52. ou can click Restore Opening Position at any time to restore the share parcels to the opening position saved in Tax Tools when you first subscribed to the service that is the opening position as at 30 06 09 Note this restores the opening position for all securities in the portfolio To update the cost base of your post 01 07 09 parcels 1 Recalculate the portfolio to today s date 2 From Trading Activity click Transaction History Your portfolio s transactions that have occurred since 1 July 2009 are displayed 3 Click Tax Lots beside the transaction you want to edit E Adjustment IAG INSURANCE AUSTRALIA GROUP LTD 6 04 2009 4 00 32 000 00 4 Complete the fields as required for each tax lot Field Description Date Type the date of the transaction Quantity Type the number of units for each parcel The combined total of all tax parcels must equal the original quantity for the transaction Total amount Type the amount paid for the units For example Security IAG INSURANCE AUSTRALIA GROUP LTD Quantity 500 Transaction Date 6 09 2009 Qty Entered Cost Base Waite Tax Lats Canes lt lt lt Previous Next gt gt gt Quantity Total Amount 300 2 000 00 200 1660 00 st george YOUR PORTFOLIO AND ITS HOLDINGS 5 Click Validate Tax Lots The system checks that the quantity of the tax lots equals the security quantity and that the dates do not exceed the transactio
53. pothetically disposed This allows you to view what your CGT position would be if you disposed of this number of the selected securities You can type all or part of the actual quantity of the asset held When you click Apply What If Selections the summary table will re display showing you the effect the disposal would have on the portfolio s CGT position for the financial year to date R st george TAX REPORTING Example The following example shows some what if disposals entered for AMP FGL and NAB stocks Note how the data in the summary table has been updated compared to the same example above The total losses available to be offset are now 56 140 Summary Realised Gains Carried Forward Losses Losses Generated in Period Total Losses Available to be offset x 56 140 56 140 Pre Offset Gain Losses Used to Offset After Offset Gain R Select All Apply What H Selections Clear Selections lt lt Previous Nest gt gt gt Sen Secunty Description E a N hehe thal e A Game HCTD Hill Capital Term Deposit 15 000 00 0 432008 422008 15 000 00 50959 0 ACUOOOGAL The Australian Secuniies Fund 000 49 230 00 so 4705 2008 49 230 00 ane AMP LTO 15 450 00 7 125 00 15 450 00 AKA AXA ASIA PACIFIC HOLDINGS LTD 1 880 00 1 880 00 23 370 00 25 23 370 00 468 00 saso s0 NA 12 300 00 NIA 13 120 25 NA NA so c o Sss 6 2 808 75 055 617 50 0 12 950 00 x so 50 S0 16 390 00 i so so
54. r 3 The Total Gains Losses Available to be offset is the sum of 1 and 2 above 4 The taxable gains and losses are shown for that period as Less than 1 year Gain that is disposals of assets that have been held for less than one year Non Discounted Indexed Gain Discounted Gain Discounted by the factor appropriate for the tax type on disposals that have been held for more than one year For example 50 for individuals Gains and losses are categorised in Tax Tools according to the applicable taxation method 5 Pre Offset Gain shows the applicable CGT gains for the financial year to date for each taxable method 6 Losses Used to Offset shows the losses to be offset against the gains for each taxable method 7 After Offset Gain shows the sum of 5 and 6 above for each taxable method 8 Net Gain Loss is the total gain or loss less any offset amounts that is field 3 minus field 6 9 Each asset disposal transaction is shown in detail in this section of the report If a rule does not apply for an asset disposal the column will be zero Gain Loss columns include calculations for both TARP and NTARP In this section e Tax Date typically this is the same as the Tax Date unless a corporate action has occurred such as a takeover where CGT rollover relief applies In this instance the purchase open date will change to the date of the corporate action but the tax date will remain as the date of the original purchase
55. rom Portfolio Details gt Holding Performance or e a paper based report available from Print Reports Note that the date range for the printed report is set from the Holding Performance screen R st george YOUR TRADING ACTIVITY VALUATION amp PERFORMANCE Total Portfolio Performan gjs0 91 For Period 37220 To 30 12 2008 Select Data amp Sort Capital amp Income Capital Only Income oniyi lt lt lt Previous Next gt gt gt Security Description Capital Gain Capital Pert WPL WOODSIDE PETROLEUM LTD 4 10 4 wa The Australian Securities Fund wi 51 353 AXA AXA ASIA PACIFIC HOLDINGS LTD 1 365 96 5 31 770 00 2 99 HCTD Hill Capital Term Deposit 494 79 3 19 0 s WARATAH COAL INC CHESS DEPOSITARY INTERESTS 440 00 33 85 440 00 33 85 0 TELSTRA CORPORATION LIMITED 56 00 11 94 96 00 20 47 40 00 ONESTEEL LTD 345 28 56 14 376 00 61 14 30 72 FOSTER S GROUP LTD 688 75 8 66 782 50 9 83 93 75 BLUESCOPE STEEL LTD 905 85 56 95 1 021 35 64 21 115 50 Waratah Coal 1 500 00 100 1 500 00 100 0 AMP LTD 5 857 72 39 33 6 840 00 45 92 982 28 QANTAS AIRWAYS LTD 6 941 79 40 47 8 337 29 48 61 1 395 50 BHP BILLITON LTD 8 049 79 24 03 8 981 22 26 81 931 43 LEND LEASE CORPORATION LTD 9 500 72 54 48 10 410 00 59 69 909 28 COMMONWEALTH BANK OF AUSTRALIA 13 550 00 19 38 13 550 00 19 38 0
56. sold to the company that issued them on a stipulated maturity date for their face value plus dividend rewards Renounceable rights An issue of rights where the offeree can choose to take up the rights offered let them lapse or trade them on the market Rights issue An offer made to a holder of an existing security to purchase new securities issued by the same company at a discount to the existing market and able to be exercised within a relatively short time span such as 30 to 60 days Security holder reference number SRN SRN is allocated by an issuer to identify a holder on an Issuer Sponsored or certificated sub register Stapled securities A combination of separate classes of securities able to be traded separately Starting Position Your starting position is defined as the start of the financial year prior to the financial year in which you upgraded your subscription to Tax Tools Plus or Premium Status Subordinated debt This indicates the condition of the Tax Tools portfolio to be updated with prices and future corporate action activity It will be active or inactive Unsecured bonds that in the event of liquidation rank behind other debt but ahead of shareholders Tax credit Tax Credit is associated with a franked dividend and represents income tax paid by the company It is treated as assessable income to the shareholder but can be used as a tax rebate by Australian resident recip
57. t information as at the portfolio s recalculation date Additional fields Select the appropriate option from the drop Some reports have additional options available down list described in the relevant report section of this user guide 3 Click Show Report The following dialog box displays indicating that Tax Tools is compiling the report processing 4 Click Save to save the report file to a folder on your computer or click Open to view the report After opening the report you can view save or print the report st george THE TAX TOOLS CASH BOOK THE TAX TOOLS CASH BOOK Cash books is a facility within Tax Tools that enables you to record bank account transactions Tax Tools Premium customers have the ability to add transactions from any bank account into their Tax Tools portfolio by creating a personal cash book Refer to Personal Assets in the Tax Tools Premium user guide R st george INCOME INCOME Tax Tools has a complex and comprehensive income processing capability Income for all ASX listed securities are automatically updated as part of the portfolio recalculation process Franked unfranked and franking credit components for ASX listed securities are automatically recorded For listed trusts any estimated tax free and tax deferred amounts are also recorded Current year listed trust distribution information is displayed as unfranked but is adjusted at the end of the f
58. t will show dividends when the portfolio s recalculation date is between the income s ex dividend date and payable date Available as a print report and onscreen from the Trading Activity gt Income amp Expenses menu premium Income Accrued But Not Paid Prasmium pro factis Portfolio 00112244 92823941221 Portfolio 183896 Date As At 30 Jun 2010 Tax Type Individual Other Aust Foreign Tax DRP Unfranked Interest Franked Assessable Tax Free Total Foreign Franking Income Tax Withheld Amount Amount Amount Amount Income Exempt Other Exp Offsets st george OTHER SYSTEM REPORTS Tax Tools Premium only reports The following reports are only available to Tax Tools Premium users Holding performance This report shows the performance of the individual holdings in the portfolio over a specified date range Available as a print report and onscreen from the Portfolio Details menu Refer to Holding performance Premium only on page 23 Portfolio by asset class The onscreen report is similar to the Portfolio Valuation by Security report but groups the portfolio s holdings by asset class A security s asset class is pre defined for ASX listed securities Available from the Portfolio Details menu The printable version of the report is called the Asset Class Summary The report initially displays in a summary format For example lt lt lt Previous Next gt gt Asset Class Cost Value Gain Loss ofTot
59. take into account your personal circumstances No part of this user guide should under any circumstances be construed or taken as tax advice It is designed to be a functional description of the Tax Tools product only Because we do not provide advice and the reports both printable and on screen produced by Tax Tools Plus and Premium have not been designed to constitute advice we recommend you obtain professional tax advice before you using Plus or Premium reports or information including this guide to make investment or tax decisions Holdings transferred to your account from another broker will not have the cost base and potentially the parcel split recorded in our systems With Plus and Premium you can manually add this information to ensure it is included along with your other holdings You need to be very careful in undertaking such manual input as you will be responsible for the accuracy of that data You can only use the reports if you are an Australian resident for tax purposes The calculations including tax rates are based on your tax type To determine your tax type we rely on your directshares account type For shares sold before 30 June 2008 we use a first in first out close out strategy to calculate capital gains For sell trades placed after 30 June 2008 we use a minimised gains close out strategy These strategies may not be the most appropriate strategies for you so please consult your tax adviser if you
60. tal for the selected period Income Only to base the performance measurements on the value of the portfolio s income for the selected period These fields do not display if you have selected Asc Desc Stock 9 The sum of the Capital Gain and Income values 10 The combined capital performance and income performance result n Calculated by multiplying the number of units held by the difference between the market value at the end of the period and the market value at the start of the period For assets that change quantity during the reporting period the calculation uses a complex algorithm that weights the result according to the number of units held and the time the units are held For assets purchased or disposed of during the period the calculation uses the purchase or disposal price at that date 42 The capital gain expressed as a percentage of the portfolio s value 13 The stock s actual income accrued during the reporting period based on the income payment s ex date 14 The stock s income expressed as a percentage of the stock s value st george TAX REPORTING TAX REPORTING A core processing function of Tax Tools revolves around applying corporate actions to portfolio holdings and calculating tax Tax Tools has an extensive database of corporate action history This assists in reconstructing portfolios and CGT liability by overlaying corporate actions onto your portfolio s transaction
61. tion history Portfolio valuation by security Holding performance Premium only Tax reporting Disposal allocation method Realised CGT reporting Best fit offsetting Unrealised CGT reporting What if scenarios Example R st george 31 31 31 32 33 33 33 33 34 35 35 36 36 36 38 39 40 41 42 43 44 CONTENTS Other system reports Tax Tools Plus and Premium reports Tax summary Income Realised Unrealised Portfolio valuation by security Cash book Trading transactions Estimated cash flow Income accrued but not paid Tax Tools Premium only reports Holding performance Portfolio by asset class Asset allocation Trading Summary report Printing reports The Tax Tools cash book Income Getting help Glossary R st george GETTING STARTED WITH TAX TOOLS GETTING STARTED WITH TAX TOOLS This user guide outlines the information and functions that may help you start using your new Tax Tools Plus or Tax Tools Premium service More complex features and sections on asset types other than ASX listed securities held by us are discussed in the Tax Tools Beyond the Basics user guide An additional user guide called Tax Tools Premium is available for Premium customers only What Tax Tools does There are tax implications of buying and selling shares and as investors know preparing their annual tax return involves what can be the time consuming collection of contract notes dividend stat
62. tshares since the start of st george YOUR TRADING ACTIVITY VALUATION amp PERFORMANCE the financial year prior to the financial year in which you upgraded your subscription to Tax Tools Plus or Premium Unverified transactions When a corporate action is created and there is still some doubt about the tax outcome for example the ATO has stated that there will be a Class Ruling on the tax treatment of a particular corporate action but the details are not fully known yet then Tax Tools will flag the corporate action as Unverified and will not include these details in calculations For example Com Demerger of MACQUARIE ATLAS ROADS GROUP Edit Delete rl MIG 25 04 2010 0 1 449 80 0 0 25 01 2010 from MACQUARIE INFRASTRUCTURE GROUP Action Allotment of 1 MQA for every 5 MIG held Once Tax Tools has verified the corporate action the flag is removed Portfolio valuation by security The Portfolio Valuation by Security report is available as an on screen report from Portfolio Details gt Portfolio Valuation by Security Print as at 23 12 2009 show GICS Show Sub totals V Include Loans Total Cost 1 081 037 08 Value 1 130 206 06 Gain Loss 49 168 98 Est Income 47 157 71 Est Yield 4 Cost base is unknown on assets in italics lt lt lt Previous Next gt gt gt SecurityCode ValueDate Quantity UnitCost Adj Cost Unit Value Value Value Gaini Loss yer Est Income Est Yield

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