Tax Statement. John Sample 5/52 Collins Street Melbourne VIC 3000

Transcription

1 Tax Statement netwealth Investment Wrap John Sample 5/52 Collins Street Melbourne VIC 3000 Issuer/operator: netwealth Investments Limited Level 5/52 Collins Street MELBOURNE VIC 3000 ABN AFSL Freecall Phone Fax contact@netwealth.com.au Product details: netwealth Investment Wrap

2 netwealth Investment Wrap Tax Statement for year ended 30 June 2010 This tax statement relates to the following investor account: Client Number: Account Number: Investor Name: Adviser: WRAP John Sample Michael Heine We are pleased to provide your netwealth Investment Wrap Tax Statement for the year ended 30 June It provides a pro forma TaxPack 2010 extract to assist you in preparing your Income Tax Return, as well as supporting schedules and any additional information that you may require to complete your Return. This information is prepared for individual Australian resident taxpayers, and not for companies or superannuation funds. The individual investor is assumed to be a tax resident of Australia for the whole of the year of income. PLEASE NOTE: netwealth has the ability to produce your Tax Statment in a format relevant for an Australian resident company or superannuation fund entity type. If you would like to receive your Tax Statement in this format, please contact netwealth. Please ensure you read the "Notes About Your Tax Statement" section at the back of this statement as the information contained in this statement is further explained. Please contact Netwealth Investments Limited on or by at contact@netwealth.com.au if you wish to discuss any aspect of your tax statement. IMPORTANT NOTICE Please retain this Tax Statement for income tax purposes. WRAP Page 1

3 TaxPack 2010 Guide These amounts can be transcribed into TaxPack 2010 and its supplement Income TaxPack 2010 pages will help you to correctly fill in the following items 10 Gross interest L Tax file number amounts withheld from gross interest M,. Gross interest, Dividends S Income Tax file number amounts withheld from dividends V, Unfranked amount,.00 Franked amount T 1 5 2, Franking credit U 6, TaxPack 2010 supplement pages s2 to s34 will help to correctly fill in the following items. 13 Partnerships and trusts Non-primary production Distribution from trusts, less net capital gains and foreign income Share of credits from income Share of franking credit from franked dividends Share of credit for tax file number amounts withheld from interest, dividends and unit trust distributions U Q R, Net non-primary production distribution ,.00,., LOSS 18 Capital Gains Did you have a CGT event during the year? G NO X YES You must also print X in the YES box at if you received a distribution of capital gain from a trust. G Net capital gain A 0,,.00 Total current year capital gains H, 6 6, Net capital losses carried forward to later income years V, Foreign source income and foreign assets or property Assessable foreign source income Other net foreign source income E 1 5 2,.00 M 1 5 2,.00 Foreign Income Tax offsets O,. F Australian franking credits from New Zealand Company, Other Income Category 1 Y 1 5 0,.00 WRAP Page 2

4 TaxPack 2010 Guide These amounts can be transcribed into TaxPack 2010 and its supplement Deductions TaxPack 2010 pages will help you to correctly fill in the following items D7 Interest deductions I, 0.00 D8 Dividend deductions H 1 6, D16 Other deductions J, 0.00 WRAP Page 3

5 Guide to Your Tax Statement - Income netwealth TaxPack 2010 Tax Statement Total TaxPack 2010 Section Section Reference Interest Interest TFN amounts withheld T1 2, L 10M Partnerships and Trusts Franked distributions D1 1, Other income D1 21, Other income T , U Franking Credits TFN amounts withheld D1 ( ) Q 13R Foreign source income Foreign sourced income Foreign income tax offset Aust franking credits from a New Zealand company D1 D1 F ( ) M/20E 20O 20F Dividends Unfranked dividends D2 2, S Gross franked dividends D2 21, Franking Credit D2 ( 6, ) Franked Dividends 15, U 11T TFN amounts withheld V Disposal of traditional securities T Y Interest and dividend deductions Interest deductions Dividend deductions T1 T , D7I D8H Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 4

6 Guide to Your Tax Statement - Capital Gains netwealth TaxPack 2010 Tax Total TaxPack 2010 Section Statement Section Reference Current year capital gains Short gains - trust distribution D Non Discounted gains - trust distribution D Non Discounted gains - sale of assets R1 7, Non Discounted gains - sale of assets R Discounted gains - trust distribution D Discounted gains - gross up amount (same as above) Discounted gains - sale of assets R2 5, Discounted gains - sale of assets R3 53, , Total current year capital gains 59, , H Net capital gains Non discounted gains 7, Current year capital losses - sale of assets 7, Discounted gains 59, Current year capital losses - sale of assets 59, Net nominal gains % discount of nominal gains Net capital gains Total current year net capital losses R4 121, A Capital losses applied Discounted Capital Losses 59, Non Discounted Capital Losses 7, Capital losses carried forward 66, , V Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 5

7 Distributions (D1) Distributions earned in the 2009/2010 financial year Date Date Franked Other Franking Gross Foreign Source Foreign Income Tax Free/ Further Amount Declared Credited Dividend Income Credits Capital Gains Income Tax Offset Deferred Assessable Credited (D3) (F1) (F2) APN Property for Income Fund (Susp) 10/08/ /08/ /09/ /09/ /10/ /10/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /04/ /04/ /05/ /05/ Total netwealth Global Specialist Balanced Fund 30/06/ /07/ , ( ) , Total , ( ) , Hunter Hall Value Growth Trust 25/01/ /01/ , , Total , , BlackRock Global Allocation Fund (Aust) (Class D) 13/01/ /01/ /06/ /07/ ( ) ( ) Total ( ) WRAP Page 6

8 Distributions (D1) continued.. Distributions earned in the 2009/2010 financial Year Date Date Franked Other Franking Gross Foreign Source Foreign Income Tax free/ Further Amount Declared Credited Dividend Income Credits Capital Gains Income Tax Offset Deferred Assessable Credited (D3) (F1) (F2) Abacus Storage Fund 06/11/ /11/ /02/ /02/ /05/ /05/ ( ) Total , ( ) , National Income Securities 17/08/ /08/ /11/ /11/ /02/ /02/ /05/ /05/ Total , , Challenger Kenedix Japan Trust 26/02/ /03/ Total Transfield Services Infrastructure Fund 31/03/ /04/ Total Westpac Stapled Preferred Securities 31/03/ /04/ ( ) Total ( ) ANZ Cash Account 01/07/ /07/ /07/ /08/ /09/ /09/ WRAP Page 7

9 Distributions (D1) continued.. Distributions earned in the 2009/2010 financial Year Date Date Franked Other Franking Gross Foreign Source Foreign Income Tax free/ Further Amount Declared Credited Dividend Income Credits Capital Gains Income Tax Offset Deferred Assessable Credited (D3) (F1) (F2) ANZ Cash Account 01/10/ /10/ /11/ /11/ /11/ /11/ /12/ /12/ /12/ /12/ /01/ /01/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /04/ /04/ /05/ /05/ /05/ /05/ Total Perpetual Pure Value Fund 13/01/ /01/ Total Westpac Stapled Preferred Securities II 30/09/ /10/ ( ) /12/ /01/ /03/ /04/ ( ) Total ( ) Term Deposit St George 4.10% 04/10/ /10/ /10/ Total WRAP Page 8

10 Distributions (D1) continued.. Distributions earned in the 2009/2010 financial Year Date Date Franked Other Franking Gross Foreign Source Foreign Income Tax free/ Further Amount Declared Credited Dividend Income Credits Capital Gains Income Tax Offset Deferred Assessable Credited (D3) (F1) (F2) Commonwealth Bank of Australia PERLS V 01/02/ /02/ Total Term Deposit St George 4.68% Mat 15/12/ /12/ /12/ Total Term Deposit St George 5.10% 15/3/ /03/ /04/ Total SPDR S&P/ASX 200 Fund 06/01/ /01/ , , Total , , Total 1, , (. 44) (. 00) , Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 9

11 Dividends (D2) Dividends earned in the 2009/2010 financial year Date Date Franked Unfranked Franking Amount Declared Credited Dividend Dividend Credits Credited Aristocrat Leisure Ltd 29/09/ /09/ ( ) Total ( ) Australia and New Zealand Banking Group Ltd 01/07/ /07/ ( ) /12/ /12/2009 1, ( ) Total 2, ( ) 1, ASX Limited 24/09/ /09/ ( ) /03/ /03/ ( ) Total 1, ( ) Century Australia Investments Ltd 26/03/ /03/2010 1, ( ) Total 1, ( ) BHP Billiton Ltd 25/09/ /09/ ( ) /03/ /03/ ( ) Total ( ) Commonwealth Bank of Australia 01/10/ /10/2009 2, ( ) 1, /04/ /04/2010 1, ( ) 1, Total 3, ( 1, ) 2, WRAP Page 10

12 Dividends (D2) continued.. Dividends earned in the 2009/2010 financial Year Date Date Franked Unfranked Franking Amount Declared Credited Dividend Dividend Credits Credited NRW Holdings Limited 02/11/ /11/ ( ) /03/ /04/ ( ) Total ( ) Crown Limited 26/10/ /10/ ( ) /04/ /04/ ( ) Total ( ) 1, Consolidated Media Holdings 16/10/ /10/ Total Perpetual Limited 30/09/ /10/ ( ) /04/ /04/ ( ) Total 1, ( ) ANZ CPS 15/09/ /09/ ( ) /12/ /12/ ( ) /03/ /03/ ( ) Total 1, ( ) QBE Insurance Group Ltd 22/09/ /09/ ( ) /03/ /04/ ( ) Total , ( ) 1, WRAP Page 11

13 Dividends (D2) continued.. Dividends earned in the 2009/2010 financial Year Date Date Franked Unfranked Franking Amount Declared Credited Dividend Dividend Credits Credited Commonwealth Bank of Australia PERLS V 30/04/ /05/ ( ) Total ( ) Sonic Healthcare Ltd 28/09/ /09/ ( ) /03/ /03/ ( ) Total ( ) ANZ CPS2 15/03/ /03/ ( ) Total ( ) Telstra Corporation Limited 25/09/ /09/ ( ) /03/ /03/ ( ) Total 1, ( ) 1, Transfield Services Ltd 12/10/ /10/2009 1, ( ) /04/ /04/ ( ) Total 1, ( ) 1, Wesfarmers Limited 01/10/ /10/2009 1, ( ) /03/ /04/2010 1, ( ) Total 2, ( ) 1, WRAP Page 12

14 Dividends (D2) continued.. Dividends earned in the 2009/2010 financial Year Date Date Franked Unfranked Franking Amount Declared Credited Dividend Dividend Credits Credited Worleyparsons Limited 28/09/ /09/ (. 12) /03/ /03/ (. 29) Total (. 41) Woodside Petroleum Ltd 05/10/ /10/ (. 73) /03/ /04/ (. 34) Total 0, (. 07) Total 5 1, , , 51 (. 79) 2 7, Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 13

15 Distributions - Capital Gains break-up (D3) Date Date Short Non discounted Discounted Non-Assessable Foreign Income Foreign Income Total declared Credited Gains Gains Gains Capital Gains Discounted C.G. Other C.G. (2) (1) (1) (2) netwealth Global Specialist Balanced Fund 30/06/ /07/ Total Total (1) Discounted Gains - Trust Distribution: (2) Non-Discounted Gains - Trust Distribution: Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 14

16 Foreign source income summary (F1) The following information will assist in the completion of the Schedule of information Date Foreign Foreign Modified Foreign Income Foreign Income Foreign Income Foreign Income declared Interest Passive Other Discounted C.G Other Cap Gain Total netwealth Global Specialist Balanced Fund 30/06/ Total Total Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 15

17 Foreign income tax offset summary (F2) The following information will assist in the completion of the Schedule of information Date Foreign Foreign Modified Foreign Income Foreign Income Foreign Income Foreign Income Aust Franking declared Interest Passive Other Discounted C.G Other Cap Gain Tax Offset Total credits from a NZ company netwealth Global Specialist Balanced Fund 30/06/ (. 50) 2 (. 50) 1 (. 00) 3 (. 00) 1 (. 00) 2 1 (. 00) Total 4 (. 50) 2 (. 50) 1 (. 00) 3 (. 00) 1 (. 00) 2 1 (. 00) Total 4 (. 50) 2 (. 50) 1 (. 00) 3 (. 00) 1 (. 00) 2 1 (. 00) Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 16

18 Capital Gains - Assets held less than 12 months (R1) (A) (B) (C) (D) (E) (F) Unit Holding Acquisition Date Disposal Date Funds Received Original Other Costs Tax Adjusted Non Discounted on Disposal Cost Base Deferred Cost Base Gain (B + C - D) (A - E) Wesfarmers Limited /03/ /02/2010 2, , , , , , , , Term Deposit St George 5.10% 15/3/ , /12/ /03/ , , , , , , , Term Deposit St George 4.68% Mat 15/12/ , /10/ /12/ , , , , , , , Term Deposit St George 4.10% 04/10/ , /06/ /10/ , , , , , , , SPDR S&P/ASX 200 Fund /07/ /05/ , , , /07/ /05/2010 1, , , /06/ /05/2010 8, , , , /06/ /02/2010 2, , , WRAP Page 17

19 Capital Gains - Assets held less than 12 months (R1) continued.. (A) (B) (C) (D) (E) (F) Unit Holding Acquisition Date Disposal Date Funds Received Original Other Costs Tax Adjusted Non Discounted on Disposal Cost Base Deferred Cost Base Gain (B + C - D) (A - E) SPDR S&P/ASX 200 Fund /05/ /02/2010 9, , , , /04/ /02/ , , , , , , , , , Total 0, Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 18

20 Capital Gains - Assets acquired Pre 21/9/1999 sold Post 21/9/1999 (R2) Unit Aquisition Disposal Funds Original Indexed Indexed Index Indexed Non Other Dist Adjust Adjusted Discounted Discounted Selected Holding Date Date Received Cost Base Cost Base Dist Adj Factor Cost Base Discounted Costs Cost Base Capital Gain Gains Net Method Adjust Gain Gross Commonwealth Bank of Australia /07/ /08/ , , , , , , , D , , , , , , , Total Discounted gains (D) Net $ 2, Gross $ 5, Total Non-discounted gains (N) $ 0.00 Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 19

21 Capital Gains - Assets acquired and sold Post 21/9/1999 (R3) (A) (B) (C) (D) (E) (F) (G) Unit Holding Aquisition Disposal Funds Received Original Other Costs Tax Adjusted Disc Capital Discounted Date Date on Disposal Cost Base Deferred Cost Base Gains Gross Gains Net (B + C - D) (A - E) (50% of F) Woodside Petroleum Ltd /10/ /08/2009 6, , , , , , , , Transfield Services Ltd 3, /01/ /06/ , , , , , , /12/ /06/ , , , , , , , , , , , SPDR S&P/ASX 200 Fund /01/ /02/2010 4, , , /01/ /01/2010 8, , , , /12/ /01/2010 6, , , , , , , , , Macquarie Communications Infrastructure Group 4, /11/ /07/ , , , , , , , , , , , , , Crown Limited 1, /07/ /07/2009 8, , , , , , , , , , , WRAP Page 20

22 Capital Gains - Assets acquired and sold Post 21/9/1999 (R3) continued.. (A) (B) (C) (D) (E) (F) (G) Unit Holding Aquisition Disposal Funds Received Original Other Costs Tax Adjusted Disc Capital Discounted Date Date on Disposal Cost Base Deferred Cost Base Gains Gross Gains Net (B + C - D) (A - E) (50% of F) Commonwealth Bank of Australia /08/ /06/ , , , , , /06/ /06/2010 7, , , , , /03/ /06/2010 2, , /03/ /02/ , , , , , /03/ /11/2009 7, , , , , /03/ /08/2009 2, , , , , , , , , ANZ Cash Account 26, /01/ /01/ , , , , , , , Total Discounted Gains (D) 53, , Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 21

23 Capital Losses - asset sales (R4) (A) (B) (C) (D) (E) (F) Unit Holding Aquisition Disposal Date Funds Received Original Other Costs Tax free/ Adjusted Capital Loss Date on Disposal Cost Base Deferred Cost Base (B + C - D) (E - A) Viridis Clean Energy Group 10, /05/ /04/ , , , , /04/ /04/ , , , , /04/ /04/ , , , , /02/ /04/2010 1, , , , , , , , , , , Transfield Services Ltd /07/ /06/2010 3, , , , /09/ /06/2010 1, , , , , /06/ /06/2010 6, , , , , , , , , Telstra Corporation Limited 1, /02/ /03/2010 4, , , , /08/ /03/2010 9, , , , , , , , Macquarie Communications Infrastructure Group /06/ /07/2009 2, , , , WRAP Page 22

24 Capital Losses - asset sales (R4) continued.. (A) (B) (C) (D) (E) (F) Unit Holding Aquisition Disposal Date Funds Received Original Other Costs Tax free/ Adjusted Capital Loss Date on Disposal Cost Base Deferred Cost Base (B + C - D) (E - A) Macquarie Communications Infrastructure Group 8, /01/ /07/ , , , , , , , , , , , Consolidated Media Holdings /12/ /12/2009 1, , , , /12/ /12/2009 5, , , , , , , , , Challenger Kenedix Japan Trust 10, /12/ /02/ , , , , , /06/ /02/2010 7, , , , , /04/ /02/2010 5, , , , , /04/ /02/ , , , , , , , , , , Australia and New Zealand Banking Group Ltd /03/ /07/2009 3, , , , /09/ /07/ , , , , , , , , Total 121, Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 23

25 Transactions (T1) Date Description Amount Effective Dividend Deductions 08/07/2009 Administration Services /07/2009 Wrap Management Fee on 31/07/ /08/2009 Wrap Management Fee on 31/08/ /09/2009 Accounting Services /09/2009 Wrap Management Fee on 30/09/ /09/2009 Wrap - Flat Adviser Service Fee on 30/09/ , /10/2009 Wrap Management Fee on 31/10/ /11/2009 Wrap Management Fee on 30/11/ /12/2009 Wrap Management Fee on 31/12/ /12/2009 Wrap - Flat Adviser Service Fee on 31/12/ , /01/2010 Wrap Management Fee on 31/01/ /02/2010 Wrap Management Fee on 28/02/ /03/2010 Wrap Management Fee on 31/03/ /03/2010 Wrap - Flat Adviser Service Fee on 31/03/ , /04/2010 Other Fees - Deductible /04/2010 Adviser Commission on 22/04/ , /04/2010 Wrap Management Fee on 30/04/ /05/2010 Administration Services Total , Gross Interest 31/07/2009 Interest on 31/07/ /08/2009 Interest on 31/08/ /09/2009 Interest on 30/09/ /10/2009 Interest on 31/10/ /11/2009 Interest on 30/11/ /12/2009 Interest on 31/12/ /01/2010 Interest on 31/01/ /02/2010 Interest on 28/02/ /03/2010 Interest on 31/03/ /04/2010 Interest on 30/04/ Total 0 68, Other Income WRAP Page 24

26 Transactions (T1) continued.. Date Description Amount Effective 10/07/2009 netwealth Investor Rewards Payment /01/2010 netwealth Investor Rewards Payment Total WRAP Page 25

27 Disposal of Traditional Securitites (T2) (A) (B) (C) (D) (E) (F) Unit Holding Acquisition Date Disposal Date Funds Received Original Other Costs Tax Adjusted Income/ on Disposal Cost Base Deferred Cost Base (Deduction) (B + C - D) (A - E) Timbercorp 8.9% Sec Redeemable Bonds 1/12/ /06/ /06/2010 0, , , , , , Total Net Income Please refer to the pages "Notes About Your Tax Statement" at the end of this statement for further explanation of this page. WRAP Page 26

28 Notes About Your Tax Statement Your Tax Statement details the taxation information relating to your account in the form and sequence specified in TaxPack 2010 and TaxPack 2010 supplement collectively (TaxPack 2010). This Tax Statement is based on your netwealth Investment Wrap investor account over the 2009/2010 financial year using data available on 26 July Distributions declared at 30 June 2010 which have not yet been credited to your account will appear on next year's Tax Statement. The information contained in this Tax Statement only relates to your investments with the netwealth Investment Wrap. You, or your taxation adviser, will need to take this into account when preparing your Tax Return if you own other investments, or derive income or capital gains or losses from outside the netwealth Investment Wrap. All the information set out in this statement is based on information provided by you and the issuers of the securities (eg.shares, managed funds) held in your Wrap account. While all care has been taken in preparing this statement, netwealth Investments Limited can accept no responsibility for errors or omissions in information provided to us. Please note that you will have to make adjustments to the amounts appearing on the TaxPack 2010 page if your portfolio is negatively geared outside the netwealth Investment Wrap, if you have other sources of income or if you have prior year losses brought forward. Prior year losses have not been brought forward to this year's calculations as you may have offset these losses against gains from sources outside your account. You will need to keep your own records of any losses in this year or prior years if you wish to use them in future years. The information about Taxation in this statement is based on taxation laws as they exist at the time this statement was published. As individual circumstances may differ and taxation matters can be complex, it is advisable to seek your own taxation advice. Please also refer to Australian Taxation Office publications for instructions on completing your Tax Return as these publications will include the Tax Return, supplement and schedules. Foreign Investment Fund income - If at 30 June 2010 you owned assets that have a significant exposure to international investment funds or international operations, you may have additional taxation liabilities because of the Foreign Investment Fund ("FIF") Income taxation legislation. As we are unable to determine whether these rules apply to you, the netwealth Tax Statement has not considered what impact these investments may have on your taxation liabilities. You should seek your own independent taxation advice in relation to any FIF investments. Taxation of financial arrangements regime - As we are unable to determine whether these rules apply to you, the netwealth Tax Statement has not considered what impact these rules may have on your tax liability. You should seek your own independent taxation advice in relation to these rules. In preparing the Tax Statement, it has been assumed that : (a) Investments in your account are held on capital account for taxation purposes, rather than on revenue account. If you hold investments on revenue account (as a trader or for the purpose of profit making by sale) you should seek your own independent taxation advice. (b) The taxpayer is an individual and a resident of Australia for tax purposes for the whole of the year of income. If the investor is a company, a Trust, or a Superannuation Fund, data contained in this statement can be adapted for the applicable entity type, however you should seek your own independent taxation advice. Similarly, if the investor is a non-resident of Australia for taxation purposes, independent taxation advice should be sought. The following pages are included in your Tax Statement. 1. TaxPack 2010 Guide This page shows the relevant Income and Deductions sections as they appear in TaxPack If you have no other investment income or capital gains or losses from other sources, you can simply transcribe these figures. 2. Guide to Your Tax Statement - Income This page cross references the items required for TaxPack 2010 with the sections in your Tax Statement. 3. Guide to your Tax Statement - Capital Gains This page cross references the items required for TaxPack 2010 with the sections in your Tax Statement. For more details please refer to page s15 of TaxPack 2010 supplement. WRAP Page 27

29 4. Distributions (D1) This section lists distributions declared by managed funds in the 2009/2010 financial year. These are grouped into the following categories : Franked Dividends represents the amount of dividends that are franked (taxed) under the imputation system. The amount shown has already been grossed up to include any imputation credits (tax credits) applicable. Other Income includes unfranked dividends, interest and rental income net of deductions such as bank charges and expenses deducted by the fund manager. It also includes the further assessable component of a distribution. Please refer to Further Assessable Section for more details. Franking Credits This is effectively the tax that has already been paid in respect of Franked Dividends and is available to you as a credit against your tax payable. Please note that you may be unable to claim franking credits if you have not held your investment in the fund for more than 45 days. Please refer to page s6 in the of TaxPack 2010 Supplement. Gross Capital Gains This is the total amount of Capital Gains applicable to Distributions from managed funds. Schedule D3 provides a further breakdown of these gains. It includes any foreign source capital gains. Foreign Source Income comprises of foreign interest or dividends before foreign withholding tax (refer s20, s24-s26 TaxPack 2010 supplement). Foreign Income Tax Offset represents tax already paid on foreign sourced income. If your distribution includes a foreign income tax offset, you should refer to "Guide to foreign income tax offset rules ", set on the ATO website. Tax Deferred distributions are generally not assessable for income tax. However the receipt of tax deferred income will reduce the cost base of your investment for the purposes of calculating the capital gain/loss on disposal. Further Assessable Although this amount is not distributed to unitholders, it must be included in your taxable income. It has been included in the other income component and is therefore shown as a negative to reconcile distributions to the amount you have received. Amount Credited is the total amount of distribution that you received. 5. Dividends (D2) This section lists the dividends paid in the 2009/2010 financial year. These are grouped into the following categories: Franked Dividends represents the amount of dividends that are franked (taxed) under the imputation system. The amount shown has already been grossed up to include any franking credits (tax credits) applicable. Unfranked Dividends represents the amount of dividends which have not been taxed. No franking credits arise in respect of unfranked dividends. Franking Credits are effectively the tax that has already been paid in respect of Franked Dividends received and are available to you as a credit against your tax payable. Please note that you will generally not be able to claim franking credits on dividends unless the shares the franking credits relate to have been held for more than 45 days. Please refer to page 118 of TaxPack Amount Credited is the total amount of dividend that you received. 6. Distributions - Capital Gains Breakup (D3) Capital gains included in managed fund distribution income may be divided into the following categories: Short gains where assets of the fund have been held for less than 12 months before they have been sold. No indexation or discounting applies to the gain. Non discounted gains where assets of the fund were acquired pre 21 September 1999 and sold after 21 September 1999 (and owned for more than 12 months), the capital gain has been calculated using the indexed cost base as at 30 September WRAP Page 28

30 Discounted gains where assets of the fund were sold after 21 September 1999 (and owned for more than 12 months), the capital gain has been calculated using the discount method i.e. 50% of the total nominal gain. The remaining 50% is not subject to tax in the hands of individuals and will be included in the non assessable capital gains column. Non Assessable capital gains this amount relates to the excluded component of the capital gains calculated under the 50% discount method. This amount should not be included in your taxable income if you are an individual. Foreign income discounted capital gains this amount is the amount of the foreign discounted capital gain component of managed fund distributions. Foreign income other capital gains this amount is the amount of the foreign other capital gain component of managed fund distributions. 7. Foreign source income summary (F1 & F2) Question 20 of TaxPack 2010 Supplement requires a "Schedule of Information" to be appended to your tax return. These pages detail the type of income received and the associated tax credits and will assist you in preparing the "Schedule of Information" 8. Capital gains or losses on Sales of Assets (R1 - R4) This section provides information on assets sold throughout the financial year that result in a capital gain or a capital loss. There are 4 possible reports: 1. Assets sold within 12 months of purchase (R1) - no indexation or discount applies. 2. Assets purchased prior to 21 September 1999 and sold after 21 September 1999 (R2). Under the Indexation Method, the cost base has been indexed to 30 September Under the Discount Method, the cost base is not indexed, but the gain (adjusted for tax deferred components of distributions) has been discounted by 50%. In transferring the results to your TaxPack page, we have chosen the method that we believe is likely to produce the lesser gain. 3. Assets purchased and sold after 21 September 1999 and held for more than 12 months (R3). Only the discount method is used for capital gains of this category. 4. Assets where a sale has resulted in a loss (R4). We have adjusted the cost base (where applicable) to calculate the capital loss. 9. Transactions (T1) This section contains details of the following transactions relating to the 2009/2010 financial year. Interest and Dividend Deductions includes management fees, adviser fees if applicable, any other deductible expenses and any rebates received on these fees. If you paid margin loan interest through the netwealth Investment Wrap it will also be included here. Gross Interest details interest earned on your WRAP cash account only. Any other interest earned on any other assets (including bank bills, term deposits etc.) will be shown in the Other Income column of the Trust Distribution schedule (D1). Other Income details any other income received not included above. 10. Disposal of traditional securities (T2) This section contains details of any traditional securities that were disposed of during the 2009/2010 financial year. Where the sale proceeds of a traditional security exceed the cost base, the difference must be declared as assessable income. Where the cost base of a traditional security exceeds the sale proceeds, the difference may be claimable as a deductible loss. WRAP Page 29

31 A dedicated investor services line is available for all client enquiries on Postal address netwealth Investments Limited Reply Paid COLLINS STREET EAST VIC 8003 RS.IW-TS-07/10