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tax on Navra funds

Discussion in 'Managed Funds & Index Funds' started by Giddo, 29th Oct, 2006.

  1. Giddo

    Giddo Active Member

    Joined:
    9th Jun, 2006
    Posts:
    42
    Location:
    SE Qld
    A basic question here but here goes.

    Is the income from Navra fund treated as normal income? ie. added to your other income for taxation purposes?

    And is this the case if you are re investing in Navra inste:) ad of actually taking the cash out?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    The income from the Navra fund distributions is actually in several different forms. Most of it is normal "income" and is added to your other income for taxation purposes.

    However, there is often some small component of capital gains included in the distribution, plus there may also be franking credits and other special forms of income. The vast majority of it usually is normal income though.

    ... and yes, this still applies even if you are reinvesting ... you still have to pay tax on the income either way.

    You get a statement at the end of the financial year that details exactly what types of income you received and where to enter them in your tax pack.

    My statement from last financial year included the following distribution components:
    • Domestic Interest
    • Domestic Other Income (this is where most of the income came from)
    • Franked Dividend
    • Unfranked Dividend
    • Capital Gains Discounted
    • Capital Gains - CGT Concession Amount
    • Tax Deferred Amount
    • TFN or non-resident withholding tax deducted