Investments: where to get information about your tax requirements

This brochure lists the products and services we provide to help you understand the tax requirements of your investments, such as:

• capital gains or capital losses from the sale of shares and property, or
• rental income, expenses and depreciation.

These products and services will also help you lodge your tax return correctly.

Investment schemes

Some advice about investment schemes:

• Don’t let promised tax benefits influence your decision about an investment.
• Always check that an investment has a Tax Office product ruling.
• For a checklist for investors, visit www.ato.gov.au/individuals.
• Remember: If it looks too good to be true, it probably is.

Guide to capital gains tax (NAT 4151 – 6.2004)

• Explains capital gains tax (CGT).
• Helps you calculate your capital gain or capital loss and complete your income tax return.
• Covers shares and units, trust distributions, real estate (including your main residence), marriage breakdown, deceased estates and record keeping.
• Explains the CGT consequences for bonus shares, shares acquired under an employee share scheme, bonus units, rights and options, and shares and units if a takeover or demerger has occurred.

Personal investors guide to capital gains tax (NAT 4152 – 6.2004)

• Provides worked examples of distributions of capital gains from managed funds.
• Covers the sale, gift or other disposal of shares in a company, units in a unit trust or managed fund.
• Covers non-assessable payments from companies or managed funds.

Rental properties (NAT 1729 – 6.2004)

• Explains taxation reporting requirements for rental property income.
• Provides information on allowable deductions, including decline in value (depreciation) items.
• Provides examples on how to calculate deductions and includes an example of a completed rental property worksheet.
• Outlines record-keeping requirements.

Deductions for prepaid expenses (NAT 4170 – 6.2004)

• Explains how to work out your deductions for prepaid expenses.
• Covers both non-business and business prepaid expenses for all types of taxpayers.

Guide to depreciating assets (NAT 1996 – 6.2004)

• Explains how to work out the decline in value of your depreciating assets.
• Explains what happens when you dispose of or stop using a depreciating asset.
• Covers the deductions available under the uniform capital allowance system for capital expenditure other than on depreciating assets.

You and your shares (NAT 2632 – 6.2004)

• Provides information about shares or bonds held as an investment and the tax implications of owning shares or bonds.
• Explains how dividends are taxed.
• Covers the types of expenses you can claim as deductions.
• Explains deemed dividends from private companies.

Refund of franking credits (NAT 4105 – 6.2004)

• Describes franking credits and their link with the franked dividends you may receive as a shareholder in a company or investor in a managed fund.
• Contains an application for refund of franking credits for people who do not need to lodge a tax return.

How to claim a foreign tax credit (NAT 2338 – 6.2004)

• Provides information about foreign tax credits if you receive income from overseas and pay foreign tax on it.
• Helps you work out your claim.

Foreign investment funds guide (web only)

• Explains foreign investment funds.
• Provides information about measures for income and gains in foreign companies not controlled by Australians.

Self managed superannuation funds – role and responsibilities of trustees (NAT 11032 – 6.2004)

• Outlines trustees’ administrative obligations.
• Provides information on the restrictions that apply to self-managed superannuation funds.
• Includes a compliance checklist.

Super Co-contribution – fact sheet (NAT 11589 – 7.2004)

• Explains the Super Co-contribution, which gives you a helping hand if you earn less than $58,000 a year, make personal superannuation contributions and meet all other requirements.
• To work out how much you may be eligible for, use the calculator at www.ato.gov.au/super.

Understanding tax in retirement (NAT 9190 – 6.2003)

• Provides information about managing retirement changes for people who have already retired or are planning their retirement.
• Contains answers to many frequently asked questions, and refers to a number of other organisations and sources.

Tax Office free services

TaxPack 2004 Supplement

• Provides information about income tax on capital gains or capital losses, rental income, foreign source income and managed funds.
• Use the supplement in conjunction with TaxPack 2004.

e-tax

Prepare your tax return electronically and lodge online. To help you prepare your tax return, e-tax provides:

• a capital gains tax module – to help you work out your capital gain or capital loss
• a rental property worksheet
• a depreciation worksheet.

e-tax is free, safe and secure, and is available to the vision impaired via screen reader software. Most refunds are sent within 14 days. Download e-tax from http://atogovau/etax

Demerger calculators

Visit www.ato.gov.au to work out the cost base for your shares in:

• BHP Billiton Ltd – demerger of BHP Steel Ltd (now Bluescope)
• CSR Ltd – demerger of Rinker Group Ltd
• Sonic Healthcare Ltd – demerger of SciGen Ltd
• WMC Ltd (now Alumina Ltd) – demerger of WMC Resources Ltd
• AMP Ltd – demerger of HHG PLC (UK)
• Mincor Resources NL – demerger of Tethyan Copper Company Ltd.

Rulings

• Product rulings offer certainty to participants about the tax treatment of specific structured investment products. A product ruling does not guarantee any product as a good or viable investment.
• For legal information such as rulings, practice statements and tax laws, visit www.ato.gov.au

More information

• Visit our website at www.ato.gov.au
• Phone the Personal Tax Infoline on 13 28 61.
• For superannuation enquiries, phone 13 10 20.
• To order publications, phone the Publications Distribution Service on 1300 720 092 and quote the publication’s full title and NAT number.

Last Modified: Tuesday, 5 October 2004