Non-assessable payments

A 'non-assessable payment' is a payment you receive from a company or trust that is not assessed as part of your income on your tax return.

If you receive a non-assessable payment or distribution, you may need to adjust the cost base of your shares or units for capital gains tax (CGT) calculations.

You must keep accurate records of the amounts and dates of any non-assessable payments in relation to your shares and units.

As a result of some stapling arrangements, some investors in managed funds have received units which have a very low cost base.

Stapled securities are created when two or more different securities are legally bound together so that they cannot be sold separately. For example, many property trusts have their units stapled to the shares of companies where they are closely associated.

If you have stapled units or shares, the amount of certain non-assessable payments may be in excess of the cost base, which will result in a capital gain.

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    Last modified: 12 May 2016QC 17182