Guide to your Vanguard Personal Investor annual tax statement

Guide to your Vanguard

Personal Investor annual

tax statement

30 June 2024

About this guide

This guide aims to assist you

in completing your tax return

in relation to your Vanguard

Personal Investor account for

the 2023/2024 inancial year.

It contains information of a

very general nature about the

treatment of your income from

investments held in your account

as shown in your Annual Tax

Statement (ATS).

Note: This guide is not a

substitute for tax advice. It has

been prepared based on a set

of assumptions which may not

be applicable to you. If you are in

any doubt about your personal

tax position we recommend that

you seek advice from a registered

tax agent.

Assumptions

In preparing this guide, we have assumed that:

• you are an individual taxpayer

• you are an Australian resident for income

tax purposes

• you use this guide in conjunction with the

Australian Taxation Ofice’s 2024 Individual

Tax Return instructions to complete

your tax return

• you hold your units for the purpose of

investment and that the Australian Capital

Gains Tax (CGT) rules apply to you.

Completing your tax returns

The following information relates to your

investment in the Vanguard Personal Investor

account. If you had income from any other

investments during the year, you will need

to include this information along with the

information provided in your Vanguard

Personal Investor ATS when completing your

tax return. For tax return references refer to

the Tax return for individuals (supplementary

section) (NAT 2679-06.2024).

Guide to your Vanguard Personal Investor tax statement – 30 June 2024 2

What other information can help me

with my tax return?

The Australian Taxation Ofice (ATO) has

a helpline for personal tax enquiries, which

is 13 28 61. The ATO also has a number of

publications which will help you to understand

your obligations and complete your return:

• Individual tax return instructions 2024 – (NAT

71050-06.2024)

• Individual tax return instructions

supplement 2024

• myTax instructions 2024

• You and your shares 2024 – (NAT

2632-06.2024)

• Guide to foreign income tax offset rules 2024

• Personal investors guide to capital gains tax

2024 – (NAT 4152-06.2024)

These publications are available from

www.ato.gov.au or by calling the ATO on

1300 720 092.

hat if I have a Vanguard Personal

Investor Kids Account?

You will receive an annual tax statement for

this account and may need to prepare and

lodge an income tax return for your child.

There are special tax rules which apply to

investment income earned by children.

General information from ATO on children’s

investments is available at: Children’s share

investments | Australian Taxation Ofice

(ato.gov.au).

If you have speciic queries, you may wish to

seek tax advice from a registered tax agent.

Can I use myTax?

The ATO allows you to prepare and lodge your

tax return online using myTax (via your myGov

account which is linked to the ATO). You can

use the myTax instructions to complete your

tax return. This is available on the ATO website.

The information provided in your Vanguard

Personal Investor ATS can be used to complete

various sections in myTax which, dependingon

the investments you hold, may include:

• Interest,

• Dividends,

• Managed Funds,

• Capital gains or losses,

• Other foreign income, and/or

• Other income.

What if I’m not an individual taxpayer?

The information provided in this guide assumes

you are an Australian resident individual

taxpayer. If your investments in your Vanguard

Personal Investor account are held through a

trust, company or superannuation fund, you

may need assistance from your registered tax

adviser in the completion of your tax return.

Frequently asked questions

Guide to your Vanguard Personal Investor tax statement – June 2024

Tax return information

The amounts reported in the ATS correspond to the description

and labels on the Tax return for individuals 2024 and Tax return for

individuals (supplementary section 2024).

Below is a brief explanation of each label disclosed in the ATS.

Australian Income

Label 10L – Interest Income

This item represents interest paid or credited

to you from any source in Australia.

However, if you received, or were entitled

to receive, distributions of interest from a

partnership or trust, show this at label 13U.

Label 11S – Unfranked Amount

This item represents the total of unfranked

dividends that have been paid or credited

to you by Australian companies that you

had shares in.

Label 11T – Franked Amount

(not inclusive of Franking Credits)

This item represents the total of franked

dividends (excluding franking credits) that

have been paid or credited to you by Australian

companies that you had shares in.

Label 11U – Australian Dividend Franking Credits

This item shows the amount of franking

credits attached to franked dividends from

investments in Australian companies that you

had shares in.

There are circumstances in which your ability

to claim a franking credit may be reduced. For

further details refer to the ATO publication You

and your shares 2024 (NAT 2632-06.2024).

Label 13C – Franked Amount (inclusive of

Franking Credits)

This item represents your share of franked

dividends and franking credits that have been

paid or attributed to you from your investment

in Australian trusts.

Label 13L – Primary Production (PP) Other income

excl. NCMI and PP Other income – NCMI

These items represent your share of income

from Primary Production activities that have

been paid or attributed to you from your

investment in Australian trusts.

Label 13U – Unfranked Amount, Interest Income,

Other Income, Other Income – CBMI, Other Income

excl. NCMI and Other Income NCMI

This item represents your share of unfranked

dividends, interest and other Australian income

known as your Non-Primary Production income

that have been paid or attributed to you from

your investment in Australian trusts.

It excludes capital gains, foreign income, and

franked dividend distributions.

Any non-Primary Production deductions that

relate to the income derived at this label is

included at label 13Y (discussed on page 6).

Foreign Income

Label 19K – Attributable Income CFC

This item relates to income and gains of

foreign companies to which you had a direct or

indirect controlling interest. Refer to the ATO

publication Foreign income return form guide

2024 for further information.

Label 20E – Foreign Source Income (including

tax offsets)

This item represents foreign source income

received from direct investments and foreign

income that has been paid or attributed to you

from trust distributions. It does not include

amounts of foreign net capital gains – see

Capital Gains/Losses section on page 6.

Label 20M – Other net foreign source income

If you have foreign deductible expenses

incurred in earning foreign source income,

the amount you include at Label 20M is the

amount at Label 20E less these expenses.

If you do not have any foreign deductible

expenses, the amount disclosed at Label 20M

will be the same as Label 20E.

Refer to the ATO publication Individual tax

return instructions supplement 2024 for further

instructions.

Other Income and deductions

Label 24Y/D15J – Disposal of Traditional Securities

Item 24Y includes gains from the disposal

of traditional securities while Item D15J

includes losses from the disposal of

traditional securities.

Label 24Y/D15J – Other Assessable Income and

Foreign exchange (FX) Gains/losses

Item 24Y includes other assessable income

and any FX gains while Item D15J includes

any FX losses.

Tax Offsets

Label 11U – Australian Dividend Franking Credits

This item shows your share of franking credits

from your investment in a company in which

you had shares. There are circumstances in

which your ability to claim a franking credit

may be reduced.

For further details refer to the ATO publication

You and your shares 2024 (NAT 2632-06.2024).

Label 13Q – Trust Franking Credits

This item shows your share of franking credits

from your investment in Australian trusts.

There are circumstances in which your ability

to claim a franking credit may be reduced.

For further details refer to the ATO publication

You and your shares 2024 (NAT 2632-06.2024).

Label 20O – Foreign Income Tax Offsets

This is your share of foreign income tax offsets

attached to the foreign income and foreign

capital gains distributed to you.

If your foreign income tax offsets from all

sources for the inancial year does not exceed

$1,000 you can claim this amount in full.

If you are claiming more than $1,000, please

refer to the ATO publication ATO publication

Guide to foreign income tax offset rules 2024

to work out the total foreign income tax offset

you can claim.

Label 20F – Australian Franking Credits from

a NZ Company

This item represents Australian franking

credits from New Zealand franking companies.

For further information refer to the ATO

publication You and your shares 2024 (NAT

2632-06.2024).

Label T7K – Early-Stage Venture Capital Limited

Partnership (LP) Offsets

This item shows your share of Early-Stage

Venture Capital LP Offsets from your

investment in eligible Australian trusts.

Label T8L – Early-Stage Investor Offsets

This item shows your share of Early-Stage

Investor Offsets from your investment in

eligible Australian trusts.

Label T9P – Other Refundable Tax Offsets –

Exploration Credits

This item shows your share of Exploration

Credits from your investment in eligible

Australian companies or trusts.

Guide to your Vanguard Personal Investor tax statement – June 2024

Deductions

Label D8 or D15J—Account fee

This item may include your account fee and

depending on the nature of income you receive,

include this amount (or parts of it) at label D8

and/or D15J.

Brokerage

Your brokerage fee generally forms part

of your cost base when you buy or sell your

investments for CGT purposes.

Label 10M – TFN withholding tax from gross interest

This item represents Tax File Number (TFN)

amounts withheld from interest where

you have not supplied a TFN or claimed a

relevant exemption.

Label 11V – TFN withholding tax from dividends

This item represents TFN amounts withheld

from dividends where you have not supplied a

TFN or claimed a relevant exemption.

Label D8 – LIC Capital Gain Amount

This item relates to dividends received from a

Listed Investment Company (LIC) which are

attributable to LIC capital gains.

Individuals, trusts, or partnerships are

entitled to a deduction of 50% and complying

superannuation funds a deduction of 33% of

the LIC capital gain.

Label 13A - Non resident withholding tax

This item represent non resident withholding

tax withheld from trust distributions.

Label 13R – TFN withholding tax from

distributions

This item represents TFN amounts withheld

from trust distributions where you have not

supplied a TFN or ABN or claimed a relevant

exemption.

Label 13Y– Other deduction (relating to trusts

distributions)

This item represents deductions that you

are entitled to claim in relation to your share of

non-primary production income from an

Australian trust (see Label 13U on page 4).

Capital Gains/Losses

This section of your tax statement provides

information on capital gains from trust

distributions and capital gains/losses from the

disposal of your investments.

For trust distributions, this section also

includes details of your share of any net foreign

sourced capital gains and related foreign

income tax offsets.

This information will help you complete

Question 18 of your tax return.

If you have derived capital gains or losses from

investments held outside of Vanguard Personal

Investor you will need to also include these

capital gains or losses in this section.

Label 18A – Net capital gain

This item represents your net capital gain

after applying any capital losses against gross

capital gains and then applying any available

CGT discount. For the purpose of calculating

the net capital gain it is assumed that the

investor is a resident individual investor and is

eligible for the 50% CGT general discount on

any discount capital gains.

Label 18H – Total current year capital gains

This amount is the sum of all capital gains

from trust distributions and capital gains

arising from the disposal of your holdings in

the investment, without applying any capital

losses nor any CGT discount.

Label 18V – Net capital losses carried forward to

later income years

This represents your net capital losses

available to be carried forward to future years.

Capital gains or losses

from disposal of assets

This section provides information on the capital gains and losses

realised from the sale and/or redemption of your investments during the

inancial year.

This capital gains and losses information

is summarised and disclosed at Capital

gains/losses from disposal of assets on

Part A of the ATS.

Vanguard Personal Investor uses a First-In

First-Out (FIFO) method for calculating capital

gains/ losses when you sell or redeem a part of

a particular investment.

Where applicable, the cost base of your

investments will be adjusted to include any

brokerage costs and/or AMIT cost base net

amounts relating to your investments in

AMITs- see below.

Importantly, should you have current year

capital gains or losses from other sources or

prior year carried forward capital losses, you

will need to include these additional capital

gains or losses when determining your overall

CGT position for the inancial year.

Also, where you have transferred investments

from another broker or investor platform to

your Vanguard Personal Investor account,

capital gains or losses shown in the ATS from

a sale or redemption of these investments

are based on the cost base information you

had supplied to Vanguard at the time of

their transfer.

Other information for

investors

Other non-assessable amounts

Managed Investment Trusts (MITs)

For investments you hold in MITs, the non-

assessable amounts may consist of tax-free

income, tax deferred, return of capital, net

exempt income, non-assessable non-exempt

(NANE) income

Attribution Managed Investment Trusts (AMITs)

For investments you hold in AMITs, the

non-assessable amounts refer to other

non-attributable amounts, net exempt

income and NANE income that have been

distributed to you.

While these amounts are not assessable for

you in the year ended 30 June 2024, these

amounts may require an adjustment to the

cost base of the units held in the AMIT. Other

non-attributable amounts may include tax-

free amounts, tax deferred amounts, and

return of capital.

AMIT cost base net amount

This represents the difference between cash

distributions and other entitlements from an

AMIT to the amount of income attributed to

you. The difference may be a positive amount

or a negative amount, which effectively

increases or reduces the cost base of your

units in the AMIT respectively.

Guide to your Vanguard Personal Investor tax statement – June 2024

What does the AMIT cost base net amount –

excess represent?

Where taxable income attributed to you is less

than the cash distribution you received, the

difference will decrease both the cost base and

the reduced cost base of your units in the fund.

The decrease in the cost base of your units in

the fund should be taken into account upon

disposal of the units when calculating your

capital gain/loss position. The reduction of

cost base of the units in the fund may give

rise to a capital gain in the year where there is

insuficient cost base to absorb the reduction

or there is a ‘nil’ cost base.

What does the AMIT cost base net amount –

shortfall represent?

Where taxable income attributed to you is

more than cash distribution you received, the

difference will increase the cost base and

reduced cost base of your units in the fund.

The increase in the cost base of your units in

the fund should be taken into account upon

disposal of the units when calculating your

capital gain/loss position.

Non-Concessional MIT income (NCMI)

NCMI

This amount is your share of MIT income from:

• MIT cross staple arrangements,

• MIT trading trust,

• MIT agricultural or

• MIT residential housing.

Excluded from NCMI

This amount is your share of MIT income

(excluded from NCMI) from transitional

arrangements or approved economic

infrastructure facilities.

Clean Building MIT Income (CBMI)

This amount is your share of income attributed

to a MIT that holds one or more energy

eficient commercial buildings constructed on

or after 1 July 2012.

CGT Information: Retail/

Wholesale transition

This section contains important information for investors in Vanguard

Retail or Wholesale managed funds who transitioned to Vanguard

Personal Investor in October 2023 and have disposed of their

investments during the income year.

CGT calculations for these disposals are

estimates and are marked with an (*) in the

Capital gains/(losses) disposal of assets section

of your annual tax statement.

They may impact the capital gain and loss

disclosures at 18A, 18H and 18V on page 4 of

your statement.

You can choose to rely on the estimated capital

gain or loss in respect of these disposals on

your statement if the applicable assumptions

apply to you.

Please carefully read either:

• Part A for Retail investors, or

• Part B for Wholesale investors;

to determine the appropriate information to

be reported in your 2024 tax return.

Before you do so, you will need to determine

if you were a Retail investor or Wholesale

investor just before you transitioned to

Vanguard Personal Investor in October 2023 as

different assumptions apply to you.

Determining if you are a Retail or

Wholesale investor

Retail investor

You are a Retail investor if on 5 October 2023,

you exchanged your units in one or more of

Vanguard retail funds for the same value of

units in the equivalent Vanguard wholesale

und and moved them to your Vanguard

Personal Investor account.

For this transition, you could elect for CGT

roll-over relief to any capital gain you made

when you exchanged your retail units for

wholesale units.

If you made any capital loss from the

exchange of units at that time, CGT roll-over

relief was not available, so these capital losses

need to be included in your 2024 tax return.

The CGT-rollover implications are contained

in ATO class ruling CR 2023/58, which was

obtained by Vanguard on your behalf.

If this applies to you, refer to Part A.

Information for Retail investors on page 10.

Who

lesale investor

You are a Wholesale investor if you held units

in one or more Vanguard wholesale funds and

you moved your units to your Vanguard

Personal Investor account on 27 October 2023.

The transfer of your wholesale managed fund

units to your Vanguard Personal Investor

account at that time does not give rise to any

capital gain or loss.

A capital gain or loss arises upon your disposal

of your wholesale units within Vanguard

Personal Investor.

If this applies to you, refer to Part

B. Information for Wholesale

investors on page 11.

Guide to your Vanguard Personal Investor tax statement – June 2024

Part A. Information for Retail investors

who disposed of their investments

post-transition

The capital gain or loss shown in your

statement - marked with an (*) - from the

disposal of your post-transition units are based

on the following assumptions:

• you disposed of these units on a First-in,

First-Out basis

• you made a capital gain on the disposal of

your retail units at the time of the exchange

• because of the capital gain, you elected for

CGT scrip-for-scrip roll-over relief to apply

for the year ended 30 June 2024. If so, this

means that for the wholesale units you

received as part of the exchange, you are

considered to have acquired those units for

CGT purposes:

‒ at the time you acquired your original

retail units (rather than when the proposal

was implemented on 5 October 2023), and

‒ with a cost base and reduced cost base

based on the original cost that was paid

for your retail units. This cost has been

apportioned across your wholesale units

when the proposal was implemented.

If you did not make an election for CGT roll-

over relief or made a capital loss

You cannot rely on the capital gain or loss

shown on your statement and will need

to calculate the capital gain or loss on the

disposal of your wholesale units that you

received as part of the unit exchange.

Broadly, this is calculated as:

• Proceeds you received from the disposal of

your wholesale units; less

• The cost base or reduced cost base of your

wholesale units – using the market value

and acquisition date for those units as of 5

October 2023.

Note that if a capital gain is made, the

CGT discount does not apply if you held

the units for less than 12 months from that

acquisition date.

What you need to do

If you made an election for CGT roll-over

relief for your units

You may choose to include the capital gain or

loss as lagged with an (*) in your tax return

noting that the cost base and reduced cost

base of the units for the CGT calculations

are based on best estimates and may not be

entirely accurate.

Alternatively, you may have maintained records

of t

he cost base and reduced cost base of your

units and any prior cost base adjustments

since you held them..

If so, you may wish to rely on those to

separately work out the capital gain or loss of

your disposal to be included in your tax return

if those records are complete.

For information on cost base adjustments,

please refer to page 7 and 8 in relation to AMIT cost

base net amount.

Guide to your Vanguard Personal Investor tax statement – June 2024

Part B. I

nformation for Wholesale

investors who disposed of their

investments post-transition

The capital gain or loss shown in your

statement - marked with an (*) - from the

disposal of your post-transition units are based

on the following assumptions:

• you disposed of your wholesale units on a

First-in, First-Out basis, and

• you acquired the relevant wholesale unit at

time your originally acquired those units

(and

not when they were moved to your Vanguard

Personal Investor account).

What you need to do

You may choose to include the capital gain or

loss as lagged with an (*) in your tax return

noting that the cost base and reduced cost

base of the units for the CGT calculations

are based on best estimates and may not be

entirely accurate.

Alternatively, you may have main

tained records

of the cost base and reduced cost base of your

units and any prior cost base adjustments

since you held them.

If so, you may wish to rely on those to

separately work out the capital gain or loss of

your disposal to be included in your tax return

if those records are complete.

For information on cost base adjustments,

please refer to page 7 and 8 in relation to AMIT

cost base net amount.

Note that if a capital gain is made, the CGT

discount does not apply if you held the units

for less than 12 months from the relevant

acquisition date.

Guide to your Vanguard Personal Investor tax statement – June 2024

More information

vanguard.com.au/personal/support/tax-hub

Contacting the ATO

ato.gov.au

ATO 13 28 61 or

ATO publications 1300 720 092

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer and the Operator of Vanguard Personal Investor. We have not

taken your objectives, financial situation or needs into account when preparing this guide so it may not be applicable to the particular situation you are considering.

You should consider your objectives, financial situation or needs, and the disclosure documents before making any investment decision. Before you make any financial

decision, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard’s financial products can

be obtained at vanguard.com.au free of charge and include a description of who the financial product is appropriate for. You should refer to the TMD before making any

investment decisions. You can access our IDPS Guide, PDSs Prospectus and TMD at vanguard.com.au or by calling 1300 655 101. Past performance information is given

for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. This guide was prepared in good faith and we accept no

liability for any errors or omissions.

GVPITAX_062024_WT

Connect with Vanguard™

vanguard.com.au

1300 655 101