How To Easily Calculate AMIT Cost Base Adjustments

[@davidbjoern]

Am I correct in assuming this is only for ETFs in Australia? I have both Vanguard Aussie ETFs and Vanguard US ETFs

[@navexa-tracker]

@@davidbjoern yes it’s for ETFs domiciled in Australia.

[@TrainMePlease]

This is a great video, but ive got a couple of questions about it: 1. In 2024, we need to do these calculations manually? Shouldn't this be all automatic? 2. Does this matter at all until you sell ETFs? If you ate just buying them, does it matter? Does it affect dividends?

[@navexa-tracker]

1) Yes this is up to you to keep track of, as you get to decide on the CGT strategy you use, like FIFO or LIFO etc. So the ATO won't/can't keep track of these adjustments as you tell them the CGT. 1b) It is automatic if you use Navexa to keep track of everything. 2) Technically it doesn't matter until you sell. But if you are not keeping track and then sell in 10 years time, you'd have to go and back calculate everything for the last 10 years. Which becomes a real mess if you've been buying more in the meantime.

[@twothreeeighteight]

This is what I've been looking for ... Many thanks

[@navexa-tracker]

Awesome! Let me know if there are any other topic around this you'd like to know.

[@Crampo1]

Great Video Mate. A good explanation.

[@navexa-tracker]

Glad you liked it

[@peterjankowski91]

Good video, thanks Navarre

[@navexa-tracker]

Glad you liked it!

[@TatsukiThomas]

another banger. been tryna figure this out

[@navexa-tracker]

No problem!

[@tomaginfort4089]

Great video! Do you know why ETFs will do a cost base decrease/increase rather than distributing the capital gain/loss?

[@navexa-tracker]

For tax purposes, you don't pay tax on the cash distributions you receive. Instead, you pay tax on the taxable components of those distributions, such as interest, dividends, capital gains, and foreign income. The taxable amount can be different from the actual cash received. If there's a difference between the taxable amount and the cash received, this difference is adjusted in the cost base of your units. This adjustment is taken into account when you eventually sell your units.

[@ValerienClaire-uv2sr]

how does that work when an ETF makes 2 or more distributions each year? how is the cost base ajustment distributed between distributions? especially if bought/sold units in between?

[@navexa-tracker]

How we do it at Navexa, is apply the adjustments across the two distributions proportionately. Then the adjustments are calculated based off the dividend dates.

[@chris-vw2nb]

In relation to ETFs...I cant stress how easy Navexa makes it for you to enter your AMIT Statement into your "income" section. And yes it makes a huge difference to your taxable income. If you do not enter your Amit statements the whole figures you see in your income report will be taxed as dividend income, BUT the Amit statement sorts out how much of that ETF income is dividends and how much of it is Capital gains/losses (yes capital gains/losses...you may have not sold any of your ETF but the fund in itself may have bought and sold)...and navexa moves the dollar amounts into the correct sections for you to report in your tax return. Which means it will move dollar amounts from your income section to your Capital gains or losses section. Plus also allowing for franking, amit excess and amit shortfalls. Once you do it once, you will never need a tax accountant again lol

[@ultimobile]

are you saying the ETF tax statement I get - with values for the questions starting with 13, 18 and 20 - are wrong ?

[@chris-vw2nb]

@@ultimobile not at all, in navexa under your income report, your income values will change as you enter your AMIT statement for each ETF. As it sorts out dividends from captial gains and makes shortfall and excess adjustments. If you choose not to enter your statement then your not correctly assessing your income. for example before your amit input, you may have a total ETF income as $8000, but once you enter all your amit statements you might find the income value reduces to $2000 as the other $6000 has been reallocated to capital gains and will show up in your capital gains report.

[@ramahsakul6850]

What do you do if you ar 15 years in? Is the adjustment every year?

[@ramahsakul6850]

Can you simply use the most recent Amit and apply the calculation to all your holdings and then apply the fifo

[@navexa-tracker]

The adjustment is every year. So your most recent AMIT statement is only for the distributions you got this year. So you will need to retrospectively go back over your 15 years worth of adjustments.

[@Crampo1]

If we never adjust our Cost Base for our ETF's and just use a simple FIFO method, what happens? Do we just lose out on potentially reducing our CGT? This could also INCREASE our CGT too though.

[@navexa-tracker]

Yes that’s correct it can go either way. But ultimately whether you lose out or not, it would be filing the tax return incorrectly.