Tax Guide 2012: 2011–12 Tax Return Information Statement Guide pptx

You should use this guide if … you have received distributions during the 2011–12 nancial year from the following ColonialFirstStateproducts: • FirstChoice Investments • FirstChoice Wholesale Investments • Colonial First State Managed InvestmentFunds • Colonial First State Wholesale Investments • Diversied Private Equity. You will receive • A separate Tax Return Information Statement for each investment you hold in the products listed above. • If you have withdrawn from your investment (including to pay an adviser service fee) or switched investments during the year you may also receive a Capital Gains Tax Information Statement from Colonial First State. All this information needs to be included when you complete your 2011–12 income tax return. Please contact your tax agent or accountant about personal tax matters For general enquiries about your Colonial First State investments, please refer to ‘Frequently asked questions’ on page 8, or call Investor Services on 13 13 36, Monday to Friday, 8am to 7pm, Sydney time. You can view this guide at colonialrststate.com.au , under ‘Forms&tools’. You may wish to give this guide toyour accountant or tax agent Tax Guide 2012 2011–12 Tax Return Information Statement Guide This guide will help you to complete your 2011–12 tax return using your 2011–12TaxReturn Information Statement from Colonial First State. This tax guide provides general information only and does not take into account your individual taxation or nancial objectives, situation or needs. It is not advice. You should discuss the information in this tax guide with your nancial adviser and your accountant or tax adviser. Copyright in the Individual tax return instructions and individual tax return forms for 2012 subsists in the Australian Taxation Ofce. The responsible entity of the funds listed on the front cover of this brochure is Colonial First State Investments Limited ABN 98 002 348 352 AFSLicence 232468. 1 2 3 This guide helps you in 3 ways 1 Declare distributions from your Colonial FirstState investments in your personal tax return. 2 Understand the different tax components of your distributions with a ‘Denitions’ page (these are on page 7 ofthisguide). 3 Answer some ‘Frequently asked questions’, that might save you a phone call, see page 8 of this guide. To complete your 2012 tax return, you will need: • A copy of the Individual tax return instructions 2012 • A copy of the Individual tax return instructions supplement2012 • A copy of the Tax return for individuals 2012 • A copy of the Tax return for individuals (supplementary section) 2012 • your Tax Return Information Statement for each of the Colonial First State products you hold that are listed on the front page of this guide. You will also need taxation information statements from any other income-paying sources • your Capital Gains Tax Information Statement for each of the Colonial First State products from which you have withdrawn (including to pay an adviser service fee), or switched during the year and a copy of the Colonial First State Capital Gains Tax Information Statement guide. This guide is not necessary if you have not withdrawn (including to pay an adviser service fee) orswitched investments during the year • your quarterly/half-yearly statements if you have paid anadviser service fee. If you have capital gains from other sources, or capital losses, you may also need the ‘Guide to Capital Gains Tax 2012’, available from the Australian Taxation Ofce (ATO). Please read all the instructions in this guide before youcomplete the Tax return for individuals (supplementary section) 2012. General points whenusing this guide • Even if you have reinvested your distributions they still need to be included in your tax return. • If you have other Colonial First State investment products and/or income from other sources you need to include all of these amounts in your 2011–12 income tax return. • If you have borrowed money to invest in any Colonial First State investment products you should be able to claim a tax deduction for any interest you have paid (whereyour borrowing is capital protected, you should seek specialist taxation advice). • If you have paid an adviser service fee you will normally be able to claim a tax deduction for this. 2 Refer to Part A of your Colonial First State Tax Return Information Statement. Then follow the headings step-by-step. Non-primary production income (13U) Refer to your Tax Return Information Statement; Non-primary production income will have an amount next to it and a Tax Return Label (13U) on your Tax Return Information Statement. • Enter this amount (plus any other amounts of non-primary production income you have from other trusts) at Question 13 U of your Tax return for individuals (supplementary section) 2012. Other deductions relating to distributions (13Y) Refer to your Tax Return Information Statement; there may be anamount shown to the right of Other deductions relating to distributions next to Tax Return Label (13Y), for the 2011–12 nancial year. Usually this would be the interest on your margin loan. If you had a Colonial First State margin loan, details of any deductible interest will be shown in Part D. (Only margin loan investors will receive Part D). You may also have other deductions that you can claim against the amount you have entered at 13 U . (Note: prepaid interest may not be fully tax deductible). Deductions you may be able to claim include any adviser service fee you have paid during the year (these amounts are shown on your Adviser Service Fee tax invoice), interest on loans used to nance your trust investments, or other expenses incurred when earning income from your investments (for example bankcharges). • Enter the total deductions at Question 13 Y of your Tax return for individuals (supplementary section) 2012. Subtract the total deductions at Y from any amount you entered at U . The result should be entered in the ‘Net non- primary production distribution’ box in Question 13 . If this is anegative amount (a loss) print L in the Loss box to the right ofthis gure. Franked distributions (13C) Refer to your Tax Return Information Statement: Franked distributions, may have an amount to the right of it and a TaxReturn Label (13C) on your statement. • Enter this amount (and include any franked distributions your received from other trust partnership distributions) at Question 13 C of your Tax return for individuals (supplementary section) 2012. Franked distributions for direct share investments should not be included here, but at Question 11 in the Tax return forindividuals 2012 (not the supplementary section). Franking credits (13Q) Refer to your Tax Return Information Statement; Franking credits (also referred to as imputation credits) may have an amount to the right of it and a Tax Return Label (13Q) on your statement. • Enter this amount (and include any franking credits you received from other trust or partnership distributions) at Question 13 Q of your Tax return for individuals (supplementary section) 2012. Franking credits for direct share investments should not be included here, but at Question 11 in the Tax return forindividuals 2012 (not the supplementary section). You should seek professional advice if you have disposed of investments shortly after receiving a distribution with frankingcredits. Credit for Tax File Number (TFN) amounts withheld (13R) Refer to your Tax Return Information Statement; Credit for TFN amounts withheld, Tax Return Label (13R) may have anamount to the right of it. • Enter this amount at Question 13 R of your Tax return for individuals (supplementary section) 2012. Total current year capital gains (18H)/Net Capital Gain (18A) If you have no amount to the right of Net Capital Gain (18A) go to Assessable foreign source income at the top of page 5 of this guide. If there is an amount shown print Y in the box at G at Question 18 on your Tax return for individuals (supplementary section) 2012. Print N in the box at Q at Question 18 unless you have an investment in a forestry managed investment scheme. Then work out which circumstance applies to you from the three options below. Do you have: Option 1 Capital gains from Colonial First State only and no capital losses. Option 2 Capital gains from Colonial First State and other sources andno capital losses. Option 3 Capital gains from Colonial First State and other sources and capital losses. Follow the steps for Option 1 below. Follow the steps for Option 2 onpage 5. Go to Assessable foreign source income on page 5 and then Part B on page 6. Option 1 Question 18 If you have an amount to the right of Total current year capital gains on your Tax Return Information Statement, enter this amount at 18 H on your Tax return for individuals (supplementary section) 2012. Take the amount to the right of Net capital gain on your Tax Return Information Statement and enter it in at 18 A . Normally the difference between Total current year gains and Net capital gains is the non taxable CGT concession amount. Then go to Assessable foreign source income, on page 5 ofthis guide. Use this statement, together with the tax guide, to help you complete your tax return. Tax guides are also available on our website at colonialfirststate.com.au. PLEASE RETAIN THIS STATEMENT FOR INCOME TAX PURPOSES FirstChoice Investments 2011/12 Tax Return Information Statement If you have any questions about this statement, please talk to your financial adviser or accountant. You can call Investor Services on 13 13 36, Monday to Friday, between 8am to 7pm, Sydney time. Part ASummary of 2012 tax return (supplementary section) items Tax return (supplementary section) Amount ($) Tax return label Non-primary production income 13,716.88 13U Other deductions relating to distributions 0.00 13Y Franked distributions70.48 13C Franking credits 11.1313Q Credit for TFN amounts withheld0.00 13R Total current year capital gains 13.14 18H Net capital gain12.26 18A Assessable foreign source income15.76 20E Other net foreign source income 15.76 20M Foreign Income Tax Offset0.0020O Rebates 29.34 24V Part B Capital gains tax information – additional information for item 18 Capital gains - discount method 1.76 (grossed up amount) Capital gains - indexation method 9.73 Capital gains - other method 1.65 Total current year capital gains 13.14 Capital gains tax concession amount 2.43 Tax-deferred amounts9.27 Account number: 070 030123132 Account type: Individual Account name: Calc14 Leapyearbb Sam Sample 74 Perth Road Sydney NSW 2000 FirstRate Term Deposits, FirstRate Saver, FirstRate Investment Deposits and FirstChoice Margin Lending (made available through Colonial First State’s FirstChoice Investments and FirstChoice Wholesale Investments product range) are products of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), administered by Colonial First State. Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of interests in FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension and FirstChoice Employer Super from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and interests in the Rollover & Superannuation Fund and the Personal Pension Plan from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840 and interests in the Colonial First State Pooled Superannuation Trust ABN 51 982 884 624.  Investor Services 13 13 36  colonialfirststate.com.au Page 1 of 6 You will need to refer to the Tax return for individuals (supplementary section) 2012 and your Tax Return Information Statement to complete the following steps. Summary of 2011–12 Tax return for individuals (supplementary section) items Part A Tax Return (supplementary section) 3 Your tax le number (TFN) See the Privacy note in the Taxpayer’s declaration on page 12 of your Tax return for individuals 2012. Your name Title – for example, Mr, Mrs, Ms, Miss Print your full name. Surname or family name Given names NAT 2679–6.2012 IN-CONFIDENCE – when completed PAGE 13 Tax return for individuals 2012 (supplementary section) 1 July 2011 to 30 June 2012 Use Individual tax return instructions supplement 2012 to ll in this taxreturn. Please print neatly in BLOCK LETTERS with a black or blue ballpoint pen only. Do not use correction uid or tape. Print one letter or number in each box. Print X in appropriate boxes. Complete your details carefully to avoid delays in processing your tax return. 13 Partnerships and trusts Include any deferred non-commercial business losses from a prior year at X or Y as appropriate and insert the relevant code in the TYPE box. , , N Distribution from partnerships . 00 , L Distribution from trusts . 00 , I Landcare operations and deduction for decline in value of water facility . 00 X Other deductions relating to distribution . 00 TYPE Primary production If you have a net loss from a partnership business activity, complete items P3 and P9 in the Business and professional items schedule for individuals 2012 in addition to item 13. , . 00 , LOSS Net primary production distribution , . 00 , Net PSI – transferred from A on your Business and professional items schedule for individuals 2012 A LOSS To complete this item, you must have read the publication Business and professional items 2012 and completed the Business and professional items schedule for individuals 2012. Attach the schedule to page 3 of your tax return. 14 Personal services income (PSI) , G Tax withheld – voluntary agreement , H Tax withheld where Australian business number not quoted . , J Tax withheld – labour hire or other specied payments . 00 . 00 INCOME Share of credits from income and tax offsets , P Share of credit for tax withheld where Australian business number not quoted . , Q Share of franking credit from franked dividends . , R Share of credit for tax le number amounts withheld from interest, dividends and unit trust distributions . , S Share of credit for tax paid by trustee . , M Credit for TFN amounts withheld from payments from closely held trusts . , B Share of National rental affordability scheme tax offset . , A Share of credit for amounts withheld from foreign resident withholding . , O Distribution from partnerships, less foreign income . 00 , U Distribution from trusts, less net capital gains and foreign income . 00 , J Landcare operations expenses . 00 , Y Other deductions relating to distributions shown at O , U and C . 00 TYPE Non-primary production Show distributions of: net capital gains at item 18 and foreign income at item 19 or 20. , . 00 , LOSS Net non-primary production distribution , C Franked distributions from trusts . 00 Use this statement, together with the tax guide, to help you complete your tax return. Tax guides are also available on our website at colonialfirststate.com.au. PLEASE RETAIN THIS STATEMENT FOR INCOME TAX PURPOSES FirstChoice Investments 2011/12 Tax Return Information Statement If you have any questions about this statement, please talk to your financial adviser or accountant. You can call Investor Services on 13 13 36, Monday to Friday, between 8am to 7pm, Sydney time. Part ASummary of 2012 tax return (supplementary section) items Tax return (supplementary section) Amount ($) Tax return label Non-primary production income 13,716.88 13U Other deductions relating to distributions 0.00 13Y Franked distributions70.48 13C Franking credits 11.1313Q Credit for TFN amounts withheld0.00 13R Total current year capital gains 13.14 18H Net capital gain12.26 18A Assessable foreign source income15.76 20E Other net foreign source income 15.76 20M Foreign Income Tax Offset0.0020O Rebates 29.34 24V Part B Capital gains tax information – additional information for item 18 Capital gains - discount method 1.76 (grossed up amount) Capital gains - indexation method 9.73 Capital gains - other method 1.65 Total current year capital gains 13.14 Capital gains tax concession amount 2.43 Tax-deferred amounts9.27 Account number: 070 030123132 Account type: Individual Account name: Calc14 Leapyearbb Sam Sample 74 Perth Road Sydney NSW 2000 FirstRate Term Deposits, FirstRate Saver, FirstRate Investment Deposits and FirstChoice Margin Lending (made available through Colonial First State’s FirstChoice Investments and FirstChoice Wholesale Investments product range) are products of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), administered by Colonial First State. Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of interests in FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension and FirstChoice Employer Super from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and interests in the Rollover & Superannuation Fund and the Personal Pension Plan from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840 and interests in the Colonial First State Pooled Superannuation Trust ABN 51 982 884 624.  Investor Services 13 13 36  colonialfirststate.com.au Page 1 of 6 You will need to refer to the Tax return for individuals (supplementary section) 2012 and your Tax Return Information Statement to complete the following steps. Summary of 2011–12 Tax return for individuals (supplementary section) items Part A Tax Return (supplementary section) 4 Investor account type 17 Net farm management deposits or repayments PAGE 14 IN-CONFIDENCE – when completed TAX RETURN FOR INDIVIDUALS (supplementary section) 2012 INCOME continued 15 Net income or loss from business If you show a loss at B or C you must complete item P9 in the Business and professional items schedule for individuals 2012. , D Tax withheld – voluntary agreement , W Tax withheld where Australian business number not quoted . E Tax withheld – labour hire or other specied payments , . 00 , Primary production – transferred from Y item P8 on your Business and professional items schedule for individuals 2012 B To complete this item, you must have read the publication Business and professional items 2012 and completed the Business and professional items schedule for individuals 2012. Attach the schedule to page 3 of your tax return. , . 00 , Non-primary production – transferred from Z item P8 on your Business and professional items schedule for individuals 2012 C LOSS LOSS . 00 , F Tax withheld – foreign resident withholding . 00 , . Deductible deposits , D . 00 , R Other repayments . 00 Your share of deferred losses from partnership activities , F . 00 , G Deferred losses from sole trader activities . 00 Item P9 in the Business and professional items schedule for individuals 2012 must be completed before you complete this item. 16 Deferred non-commercial business losses , . 00 , J Non-primary production deferred losses , . 00 , I Primary production deferred losses , . 00 , LOSS E Net farm management deposits or repayments 18 Capital gains G Did you have a capital gains tax event during the year? , H Total current year capital gains . 00 , V Net capital losses carried forward to later income years . 00 NO YES , . 00 , A Q Did this CGT event relate to a forestry managed investment scheme interest that you held other than as an initial participant? NO YES You must print X in the YES box at G if you received a distribution of a capital gain from a trust. Net capital gain 19 Foreign entities I Did you have either a direct or indirect interest in a controlled foreign company (CFC)? NO YES , . 00 , CFC income K W Have you ever, either directly or indirectly, caused the transfer of property – including money – or services to a non-resident trust estate? NO YES , . 00 , Transferor trust income B Also include at F Australian franking credits from a New Zealand company that you have received indirectly through a partnership or trust distribution. 20 Foreign source income and foreign assets or property E Assessable foreign source income , , . 00 . 00 , , Net foreign pension or annuity income WITHOUT an undeducted purchase price Other net foreign employment income L T , . 00 , LOSS , . 00 , Net foreign pension or annuity income WITH an undeducted purchase price D , . 00 , Other net foreign source income M , . 00 , Australian franking credits from a New Zealand company F , N Exempt foreign employment income . 00 O P During the year did you own, or have an interest in, assets located outside Australia which had a total value of AUD$50,000 or more? NO YES Foreign income tax offset , . LOSS LOSS , . 00 , Net foreign rent R LOSS , . 00 , Net foreign employment income – payment summary U LOSS LOSS , C Early repayments exceptional circumstances . 00 , N Early repayments naturaldisaster . 00 Your tax le number (TFN) See the Privacy note in the Taxpayer’s declaration on page 12 of your Tax return for individuals 2012. Your name Title – for example, Mr, Mrs, Ms, Miss Print your full name. Surname or family name Given names NAT 2679–6.2012 IN-CONFIDENCE – when completed PAGE 13 Tax return for individuals 2012 (supplementary section) 1 July 2011 to 30 June 2012 Use Individual tax return instructions supplement 2012 to ll in this taxreturn. Please print neatly in BLOCK LETTERS with a black or blue ballpoint pen only. Do not use correction uid or tape. Print one letter or number in each box. Print X in appropriate boxes. Complete your details carefully to avoid delays in processing your tax return. 13 Partnerships and trusts Include any deferred non-commercial business losses from a prior year at X or Y as appropriate and insert the relevant code in the TYPE box. , , N Distribution from partnerships . 00 , L Distribution from trusts . 00 , I Landcare operations and deduction for decline in value of water facility . 00 X Other deductions relating to distribution . 00 TYPE Primary production If you have a net loss from a partnership business activity, complete items P3 and P9 in the Business and professional items schedule for individuals 2012 in addition to item 13. , . 00 , LOSS Net primary production distribution , . 00 , Net PSI – transferred from A on your Business and professional items schedule for individuals 2012 A LOSS To complete this item, you must have read the publication Business and professional items 2012 and completed the Business and professional items schedule for individuals 2012. Attach the schedule to page 3 of your tax return. 14 Personal services income (PSI) , G Tax withheld – voluntary agreement , H Tax withheld where Australian business number not quoted . , J Tax withheld – labour hire or other specied payments . 00 . 00 INCOME Share of credits from income and tax offsets , P Share of credit for tax withheld where Australian business number not quoted . , Q Share of franking credit from franked dividends . , R Share of credit for tax le number amounts withheld from interest, dividends and unit trust distributions . , S Share of credit for tax paid by trustee . , M Credit for TFN amounts withheld from payments from closely held trusts . , B Share of National rental affordability scheme tax offset . , A Share of credit for amounts withheld from foreign resident withholding . , O Distribution from partnerships, less foreign income . 00 , U Distribution from trusts, less net capital gains and foreign income . 00 , J Landcare operations expenses . 00 , Y Other deductions relating to distributions shown at O , U and C . 00 TYPE Non-primary production Show distributions of: net capital gains at item 18 and foreign income at item 19 or 20. , . 00 , LOSS Net non-primary production distribution , C Franked distributions from trusts . 00 Assessable foreign source income (20E) If you have an amount to the right of Assessable foreign source income on your Tax Return Information Statement (and you do not have any other foreign source income from another source, including foreign employment or foreign pension/annuities), then enter the amount to the right of Assessable foreign source income at Question 20 E . If you do have foreign income from foreign employment and/or foreign pensions and annuities, youwill need to refer to the instructions for Question 20 intheIndividual tax return instructions supplement 2012. You should seek professional advice if you have deductions or losses carried forward relating to foreign income. Other net foreign source income (20M) If you have an amount to the right of Other net foreign source income on your Tax Return Information Statement (and you do not have any other foreign source income from another source (including foreign employment income or foreign pension/ annuity income)) then include the total to the right of Other netforeign source income at Question 20 M . If you have foreign employment income or foreign pension/ annuity income you will have to follow the instructions for Question 20 in the Tax return for individuals (supplementary section) 2012. You should seek professional advice if you have deductions or losses carried forward relating to foreign income. Note: If you have Other net foreign source income or Assessable foreign source income from other sources (ie other managed fund distributions) you will need to combine these amounts before completing your tax return. Foreign income tax offset (200) If you have an amount next to foreign income tax offsets on your tax statement, include that amount in your Tax return for individuals (supplementary section) 2012 at 20 O . 5 17 Net farm management deposits or repayments PAGE 14 IN-CONFIDENCE – when completed TAX RETURN FOR INDIVIDUALS (supplementary section) 2012 INCOME continued 15 Net income or loss from business If you show a loss at B or C you must complete item P9 in the Business and professional items schedule for individuals 2012. , D Tax withheld – voluntary agreement , W Tax withheld where Australian business number not quoted . E Tax withheld – labour hire or other specied payments , . 00 , Primary production – transferred from Y item P8 on your Business and professional items schedule for individuals 2012 B To complete this item, you must have read the publication Business and professional items 2012 and completed the Business and professional items schedule for individuals 2012. Attach the schedule to page 3 of your tax return. , . 00 , Non-primary production – transferred from Z item P8 on your Business and professional items schedule for individuals 2012 C LOSS LOSS . 00 , F Tax withheld – foreign resident withholding . 00 , . Deductible deposits , D . 00 , R Other repayments . 00 Your share of deferred losses from partnership activities , F . 00 , G Deferred losses from sole trader activities . 00 Item P9 in the Business and professional items schedule for individuals 2012 must be completed before you complete this item. 16 Deferred non-commercial business losses , . 00 , J Non-primary production deferred losses , . 00 , I Primary production deferred losses , . 00 , LOSS E Net farm management deposits or repayments 18 Capital gains G Did you have a capital gains tax event during the year? , H Total current year capital gains . 00 , V Net capital losses carried forward to later income years . 00 NO YES , . 00 , A Q Did this CGT event relate to a forestry managed investment scheme interest that you held other than as an initial participant? NO YES You must print X in the YES box at G if you received a distribution of a capital gain from a trust. Net capital gain 19 Foreign entities I Did you have either a direct or indirect interest in a controlled foreign company (CFC)? NO YES , . 00 , CFC income K W Have you ever, either directly or indirectly, caused the transfer of property – including money – or services to a non-resident trust estate? NO YES , . 00 , Transferor trust income B Also include at F Australian franking credits from a New Zealand company that you have received indirectly through a partnership or trust distribution. 20 Foreign source income and foreign assets or property E Assessable foreign source income , , . 00 . 00 , , Net foreign pension or annuity income WITHOUT an undeducted purchase price Other net foreign employment income L T , . 00 , LOSS , . 00 , Net foreign pension or annuity income WITH an undeducted purchase price D , . 00 , Other net foreign source income M , . 00 , Australian franking credits from a New Zealand company F , N Exempt foreign employment income . 00 O P During the year did you own, or have an interest in, assets located outside Australia which had a total value of AUD$50,000 or more? NO YES Foreign income tax offset , . LOSS LOSS , . 00 , Net foreign rent R LOSS , . 00 , Net foreign employment income – payment summary U LOSS LOSS , C Early repayments exceptional circumstances . 00 , N Early repayments naturaldisaster . 00 Option 2 For capital gains from other sources, you may need to use the ‘Guide to Capital Gains Tax 2012’, which is available from the ATO. The guide provides step-by-step instructions to calculating the amounts needed to complete your tax return. Question 18 If you have an amount to the right of Total current year capital gains on your statement, add this amount to gains received from other sources (calculated using the ATO guide). The sum of these amounts should be entered at 18 H of your Tax return for individuals (supplementary section) 2012. Take the amount to the right of Net capital gain and add this amount to your net capital gain from other sources (calculated using the ATO guide). The sum of these amounts should be entered at 18 A . Then go to Assessable foreign source income, below. Total – components of distribution Part B We have calculated the amounts of capital gains that need to be included in your tax return as they relate to the distributions from your Colonial First State investments. If you have capital gains from other sources, you may need touse the ‘Guide to Capital Gains Tax 2012’ (NAT 4151) 1 , which is available from the ATO. That guide provides step- by-step instructions to calculating the amounts needed to complete your tax return. For gains from other sources you will need to separately calculate an indexed capital gain amount, a discounted capital gains amount, and a capital gains – other amount. These amounts need to be added to the amounts distributed from Colonial First State as shown under the heading Additional capital gains information in Part B of your Tax Return Information Statement. Add the gure shown at Total current year capital gains to any other gains you have and enter the total at Question 18 H . If you have any capital losses for the 2011–12 tax year or prior year capital losses brought forward (these will be shown at box V of Question 18 of your 2010–11 tax return supplement), you must nominate the capital gain against which these losses are to be applied. Typically, they will be applied rstly to capital gains – indexation method, then to capital gains – other method and lastly to the discounted capital gains. The way you apply your capital losses will placeyou in one of three situations: Situation A Where the total of the 2011–12 nancial year capital losses and any prior year’s capital losses, exceed the Total current year capital gains (that you have included at box H at Question 18 on your tax return), the excess should be entered into box V at Question 18 . No amount should be entered in box A . Situation B Where the total of the 2011–12 nancial year capital losses and any prior year’s capital losses, fully offset the amounts shown at Capital gains – indexation method and Capital gains – other method, then the amount shown against Capital gains – discount method (that you have included at box H at Question 18 on your tax return), should be reduced by any remainingloss. The end gure should then be divided by two and this amount entered into box A of Question 18 . (If the investment is made by a company no division is required; if a superannuation fund then multiply by 2⁄3). Situation C Where the total of the 2011–12 nancial year capital losses and any prior year’s capital losses, do not exceed the Capital gains – indexation method and Capital gains – other method then deduct the amount of the loss from the amount shown in Part A of your Tax Return Information Statement opposite Net capital gain (18A). The reduced amount should be entered at Question 18 A . Please note: If you have capital gains from other sources, you will need to include these gains in situations A, B and C. 6 Follow these instructions if you have any capital losses (either this year or prior years). 1 All ATO publications are categorised according to a code that starts with the letters ‘NAT’ followed by a unique number. You can nd the publication on the ATO website (www.ato.gov.au) by using the NAT number. Denitions Capital gains denitions CGT concession amount This amount represents the non-taxable component of a discounted capital gain. That is, the amount is 50% of a capital gain that is not assessable to an individual. We have altered the calculation of this amount if you are a company or superannuation fund so the concession reects no discount, or 1 ⁄3 discount respectively. (Your account type is shown on the top right hand corner of the rst page of your Tax Return Information Statement.) Discounted capital gains This amount represents capital gains on assets held for more than 12 months and has been discounted by 50%. Where your investment is made by a: • super fund, we have discounted by 1 ⁄3 • company, no discount has been made • trust, the 50% discount has been applied. Capital gains – indexation method This amount represents capital gains that have been calculated using the indexation method which adjusts for ination. Indexation was frozen from September 1999. Capital gains – other method This amount represents capital gains made on assets held for less than 12 months. Such gains do not qualify for either indexation or the CGT discount. Additional capital gains information These amounts represent the sum of all capital gains amounts distributed to you and is provided to help you complete your return, if you have capital losses. TARP and NTARP Capital Gains ‘TARP’ are capital gains from ‘Taxable Australian Real Property’. Capital Gains ‘NTARP’ are capital gains from assets that are ‘Not Taxable Australian Real Property’. If you are aresident of Australia for tax purposes this distinction isirrelevant. If you are not a resident of Australia for taxation purposes this distinction may affect the amount of withholding tax deducted from your distribution. Other denitions Credits for TFN amounts withheld If you have not supplied your tax le number (TFN) (or relevant exemption) to Colonial First State, we have deducted tax at the top marginal rate (46.5%) from your distribution and paid itto the ATO. This TFN withholding tax will be offset against the tax payable on your income and may be refunded to you bythe ATO when you lodge your 2011–12 tax return. Should you wish to prevent this from happening again, please provide us with your TFN as soon as you can. Tax-free amounts This category represents non-taxable income derived by the fund. This income will usually be from infrastructureinvestments. Tax-deferred amounts This category represents distributions that are not taxable to you. They have arisen due to differences between accounting and taxable income eg those due to different depreciation rates which is common for investments in Property Trusts or REITs. Tax deferred income may alter your cost base for CGT purposes when you redeem your units. Net cash distribution The total distributions you have received (including any which have been reinvested). Withholding tax If you are not a resident of Australia, for tax purposes Colonial First State is required to withhold tax from some components of your distribution. Interest withholding tax is deducted from Australian interest income and dividend withholding tax is deducted from unfranked dividends paid by Australian companies. Other components may also be subject to tax under subdivision 12–H of the Australian Income Tax legislation. Pleasesee your accountant for further information. 7 Frequently asked questions Q Can everyone use this guide? A Under certain circumstances you may not be able to use this guide to complete your tax return. The following scenarios outline some of these circumstances and we encourage you to seek professional advice if you think they apply to you: • You have any expenses or carried forward foreign losses relating to foreign source income. This is because your entitlement to foreign tax credits may be affected. • You changed your residency status during the 2011–12 tax year. If you became a non-resident during the year youmay need to lodge an Australian tax return for the partof the year that you were a resident. If you became a resident during the year you may need to apportion your distributions to the respective periods. • You disposed of your investment shortly after receiving a distribution containing a franked dividend component. Q Can I claim a tax deduction for management fees and expenses of the funds? A No, the management fees and expenses have already been deducted from distributed income and are reected in the unit prices. Q I’m not completing a tax return, can I still claim my imputationcredits? A Yes, you may still be able to claim your imputation credits. Contact the ATO for a copy of the relevant form. Q Do I need to include my management fee rebate and other rebates which appears on my half-yearly statement in my taxreturn? A Normally any rebate should be included as assessable income in your income tax return. However, you should check your particular circumstances with your accountant. Q If the investment is made by a company, trust, superannuation fund, or partnership, is the information in this guide relevant for its tax return? A This guide is mainly prepared to assist individual investors to complete their tax return. However your Tax Return Information Statement is relevant. Some of the denitions and general information may also be of use to your accountant or nancial adviser. Q Can a mastertrust or IDPS use this guide? A Yes, however, you need to ensure that the investor’s tax status (Individual, Trust, Company or Superannuation Fund) has been correctly recorded as this affects the capital gains information provided. (The account type is shown on the top right hand corner of the rst page of your Tax Return Information Statement.) Q Can the franking credits exceed the amount of my Australianincome? A Franking credits can exceed the amount of Australian income included in your distribution because the management expense is deducted from the fund before the distribution payment. For example, let’s say the fund income is $100 and franking credits are $50. If the fund’s expenses are $60, then income distributed to investors will be $40 while franking credits remain at $50. Q Why are my concessional capital gains greater than mytaxablecapital gains? A This can happen due to the way expenses are allocated against income and capital gains. For example, the fund has a gross capital gain of $100 and management fees of $10. The CGT concession amount will be $50 because of the 50% discount. The management fees of $10 are allocated against the taxable part of the capital gains ($50 − $10) which reduces the discounted capital gain to $40. Q My ‘Account Type’ is Joint or Partnership – how should I use this tax guide? A This guide assumes an individual taxpayer client. Only one statement per account is issued. You will need to apportion the amounts on the tax statement accordingly. For example, if your account is a joint account, you will need to halve the amount on your statement and include the reduced amount in your respective individual tax return. 8 Want more information? For enquiries about your personal tax matters please talk to your nancial adviser or accountant. For general enquiries about your Colonial First State investments, please call Investor Services on 13 13 36, Monday to Friday, 8am to 7pm, Sydney time or email contactus@colonialrststate.com.au. 18211/FS836/0612 . 2012 2011–12 Tax Return Information Statement Guide This guide will help you to complete your 2011–12 tax return using your 2011–12 Tax Return Information Statement. your Tax Return Information Statement; Non-primary production income will have an amount next to it and a Tax Return Label (13U) on your Tax Return Information