PL00579-1901-PPI Tax Guide 2013

Perpetual Protected Investments
GUIDE TO YOUR ANNUAL
TAX STATEMENT
July 2014
TO HELP YOU UNDERSTAND YOUR ANNUAL TAX
STATEMENT AND COMPLETE YOUR TAX RETURN
FOR THE 2013/2014 FINANCIAL YEAR.
HOW TO USE THIS GUIDE
When using the information in
your tax statement and this guide,
please note that:
• Your tax statement includes
information about the distributions
you have received from funds
held through Perpetual Protected
Investments for the financial year
to 30 June 2014. This includes
distributions with an effective date
of 30 June 2014. You are required to
include these amounts in your tax
return for the 2013/2014 financial
year even if you actually received
the distribution payment after
30 June 2014.
• Your tax statement and this guide
assume you are an Australian
resident individual taxpayer.
• Distributions may include realised
net capital gains associated with
the sale of investments by a fund.
These are shown under the heading
‘Distributed Capital Gains’.
• Your tax statement includes any
taxable capital gains or losses
relating to the disposal of units in a
fund or call options. These are shown
under the heading ‘Capital Gains
and Losses’.
• We recommend that you seek
professional assistance when
completing your tax return. If you
have questions about your tax
return, please consult your tax
adviser or the Australian Taxation
Office (ATO). Perpetual is not able
to provide you with tax advice.
If you have any questions about
your investment, your tax statement
or this guide, please phone
1800 002 513 during business
hours (Sydney time) or
email [email protected]
• The information in this guide is
not tax advice. It only relates to
your investment in funds offered by
Perpetual Protected Investments
and is not a complete guide to
completing your tax return.
You should refer to the ‘Individual
Tax Return Instructions 2014’
(2014 instruction booklet) and the
online supplementary tax return
instructions 2014 when completing
your tax return for the 2013/2014
financial year. They include
detailed instructions on how to
complete the 2014 Tax return for
individuals and 2014 Tax return
for individuals (supplementary
section). The 2014 instruction
booklet is available from the ATO –
download it from the ATO website
or call 1300 720 092. The 2014
instruction booklet will refer you
to additional information including
the supplementary tax return
instructions which are available on
the ATO website –
www.ato.gov.au/instructions2014.
The following guidelines are
designed to help you complete the
2014 supplementary section.
LOAN INFORMATION
• Your tax statement does not
include interest incurred on loans.
This interest is shown on your
Statement of Account for the loan.
The extent to which this interest
is deductible will depend on your
individual circumstances and
the particular series of Perpetual
Protected Investments in which
you have invested. More details
were provided in the product
disclosure statement for the
relevant series.
• Your tax statement does not
include any adviser service fees
you have paid. These are also
shown on the Statement of Account
for your loan. Whether these fees
are deductible will depend on why
they were paid.
For a reprint of your
2013/2014 Tax Statement
contact us on
1800 002 513, or
[email protected]
Your tax statement has six parts:
Trust Distributions shows the
amounts received as unit trust
distributions, other than the capital
gains and foreign source income
components of those distributions.
Foreign Source Income shows the
foreign source income components
of the amounts received as unit trust
distributions.
Distributed Capital Gains shows
the capital gains components of
the amounts received as unit trust
distributions.
Capital Gains and Losses shows the
capital gains and losses made on the
disposal of units or call options.
Allowable Deductions shows
expenses you have incurred for which
you can claim deductions. (Does not
include potential claims for interest
expense or adviser fees).
Other Expenses shows any put option
premium you have paid.
The following directions describe
how to transfer amounts from the
tax statement to your tax return.
If you have investment income or
deductions from other sources you
will need to add those amounts
together with those shown on the
tax statement.
Since your tax statement does not
include amounts of any interest
incurred on your loan nor any adviser
service fees paid, these amounts can
be found on the Statement of Account
for your loan. They are explained in
more detail below under the heading
‘Item D15 Other deductions’.
ITEM 13 PARTNERSHIPS
AND TRUSTS
Record the amount shown on your
tax statement as ‘Total Non-Primary
Production Income’ and enter it
at label U of Item 13, ‘Share of net
income from trusts, less capital gains
and foreign income’ on your 2014
supplementary section.
For the 2013/2014 year, you do not
need to show separately any ‘franked
distributions’ received from your
investment at label C of Item 13.
Take the amount shown on the tax
statement as ‘Franking Credits’
and enter it at label Q of Item 13,
‘Share of franking credit from
franked dividends’ on your 2014
supplementary section.
Generally, it is better to reduce the
other gains, short capital gains and
Frozen Indexed gains first.
You may have similar income
from sources other than Perpetual
Protected Investments that will need
to be added to these numbers.
Subtract any capital losses from other
sources and net capital losses carried
forward from prior years against your
remaining current year capital gains.
Again, it is generally better to reduce
the other gains and short capital
gains first.
ITEM 18 CAPITAL GAINS
If there are amounts other than zero
on your tax statement under either
‘Distributed Capital Gains’ or ‘Capital
Gains and Losses’ then print ‘X’ in the
‘Yes’ box at label G of Item 18 on your
2014 supplementary section.
If you still have any ‘Discount method’
capital gains remaining, these can be
reduced by the CGT discount (50%
for individuals and 1/3 for complying
superannuation entities). Record the
net capital gain at label 18A on your
2014 supplementary section.
Add together the following amounts
from your tax statement:
If you have a loss, record the net
capital losses available to be carried
forward to later income years at label
18V on your 2014 supplementary
section.
• Under the heading ‘Distributed
Capital Gains’ add the amounts
shown as ‘Other Gains’ and 2 x
‘Discount Gains’.
• Under the heading ‘Capital Gains
and Losses’ add the amounts shown
as ‘Short Gains’, ‘Frozen Indexed
Gains’ and ‘Nominal Gains’.
Add this to capital gains from other
sources. Enter this total at label H of
Item 18, ‘Total current year capital
gains’ on your 2014 supplementary
section.
Note that the ‘Discount Gains’ shown
under the heading ‘Distributed
Capital Gains’ have been discounted
by 50% by the relevant Fund.
The amounts shown on the statement
in ‘Discount Gains’ under the heading
‘Capital Gains and Losses’ have already
been reduced by the CGT discount:
• 50% for individuals
• 1/3 for a complying superannuation
entity.
If the investment is held in the name
of a company the ‘Discount Gains’
shown under the heading ‘Capital
Gains and Losses’, have not been
discounted.
From the total calculated above
subtract the amount shown on the
tax statement as ‘Losses’ under the
heading ‘Capital Gains and Losses’.
Refer also to section ‘D15 Other
Deductions’ on page 6 of the guide.
ITEM 20 FOREIGN SOURCE
INCOME AND FOREIGN ASSETS
OR PROPERTY
Record the amount shown on the
tax statement as ‘Total Assessable
Foreign Source Income’ and enter the
same number at two different labels of
item 20 on your 2014 supplementary
section: label E ‘Assessable foreign
source income’ and label M ‘Other net
foreign source income’.
Record the amount shown on the
tax statement as ‘Aust Franking
Credits from NZ Co.’ and enter it
at label F of item 20, ‘Australian
franking credits from a New Zealand
franking company’ on your 2014
supplementary section.
You may have similar income
from sources other than Perpetual
Protected Investments that will need
to be added to these numbers.
If there is an amount shown on the
tax statement as either ‘Foreign Tax
Credit – Modified Passive’ or Foreign
Tax Credit – Interest’ you may be
entitled to a foreign tax offset. This is
because foreign tax has already been
paid on the amount distributed to you.
The amount of ‘Foreign income tax
offset’ you are entitled to will depend
on the amount of foreign tax credits
you have received from all sources.
2014
(supplementary section)
1 July 2013 to 30 June 2014
Use Individual tax return instructions supplement 2014 to fill in this tax return. Please print neatly in BLOCK LETTERS
with a black or blue ballpoint pen only. Do not use correction fluid 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.
See the Privacy note in the Taxpayer’s
declaration on page 10 of your Tax return
for individuals 2014.
Your tax file number (TFN)
Your name
Title – for example,
Mr, Mrs, Ms, Miss
Surname or
family name
Print your full name.
Given names
INCOME
13 Partnerships and trusts Include any deferred non-commercial business losses from a prior year at X or Y
Primary production
as appropriate and insert the relevant code in the TYPE box.
Distribution from partnerships
N
,
Share of net income from trusts
L
,
.00
.00
Landcare operations and deduction
.00
for decline in value of water facility I
,
TYPE
continued
Other deductions relating to
.00
X
,
income amounts
or loss shown at N and L
Primary production
– transferred from
15 Net
your
Business
and professional
Y item P8 on
from business
Net primary
production
amount
items schedule for individuals 2014
To complete
this item, you
must have read
Non-primary
production
the publication Business
and professional
Non-primary production – transferred
from Z
Distribution
from partnerships,
. professional
O P8 on your Business
items 2014 and completed the Business
and income item
and 00
less foreign
,
professional
items
schedule
individuals
2014.
items schedule for individuals 2014
Share
of net
incomefor
from
trusts, less
capital
Attachgains,
the schedule
to pageand
3 offranked
your taxdistributions
return.
U
2 , 3 8 7 .00
foreign income
.
Tax withheldFranked
– voluntary
agreement
D
distributions
.0000
,
from
trusts C
,
Tax withheld where
Australian
.
business
numberexpenses
not quoted W
,
.00
Landcare
operations
J
,
Tax withheld – foreign
. TYPE
E
residentrelating
withholding
Other deductions
to
,
.00
Y
amountsTax
shown
at O–, labour
U andhire
C or
withheld
,
.00
other specified payments F
,
Net non-primary production amount
INCOME
business
ShareDeferred
of credits non-commercial
from income and tax
offsets losses
16
Your for
share
deferred
losses
Share of credit
tax of
withheld
where
fromnumber
partnership
activitiesP F
Australian business
not quoted
, ,
.
.
.00
, ,
.
.00
, ,
,
.
.00
, ,
14 Personal services income (PSI)
LOSS
LOSS
,
,
,
C Show amounts
,
of:
,
.00
.00
,
.00
LOSS
capital gains from trusts at item 18 and
If you show a loss at B or C
foreign
at item
you
mustincome
complete
item19
P9or
in 20.
the
Business and professional items
schedule for individuals 2014.
2 , 3 8 7 .00
,
LOSS
.00
Deferred
losses
from
.
Share
of franking
credit
sole trader
activitiesQG
, 1 3 . 7008
from franked
dividends
, 7
Primary
production
Item P9 inShare
the Business
professional
schedule for
of credit and
for tax
file numberitems
amounts
.
deferred
losses
individuals 2014 must
be completed
beforedividends
you complete
R this item. ,
withheld
from interest,
Non-primary
production
and unit trust distributions
deferred losses
Credit for TFN amounts withheld from
.
M
Net
farm
management
deposits
or
repayments
payments
from
closely
held
trusts
,
17
Deductible
depositsS D
Share of credit for tax
paid by trustee
Early repayments
Share of credit for amounts
withheld
C
exceptional
from foreign
residentcircumstances
withholding A
Early repayments
Share of National
rental
N
natural disaster
affordability scheme tax offset B
Other repayments R
B
I
,
,
J
,
,
.00
.00
.00
LOSS
To complete this item, you must .
Net farm management
E have read, the publication
.00
deposits
or
repayments
G
, Business 00
,
and professional items 2014 and
Did you have
a capital
gains
in the YESthe
box
at G if and
you had an
Capital gains
Tax withheld
where
Australian
Business
YES X .You must print Xcompleted
tax event
during
the year?H G NO
amount of capitalprofessional
gains from aitems
trust.schedule for
business
number
not quoted
,
CODE
individuals 2014. Attach the schedule
Tax withheld
– labour
hire oran
Have
you applied
.00
to page 3 of your tax return.
or rollover?J M NO X , YES
other exemption
specified payments
Net capital gain A
1 , 9 0 0. .00LOSS
,
Net PSI – transferred from A on your Business and
00
A
Total current year capital
gains H items schedule
,
,
professional
3 1for 0individuals
7 .002014
Tax withheld – voluntary agreement
18
NAT 2679-06.2014
Net capital losses carried
Sensitive
V
forward to later income years
19 ForeignDidentities
you have either a direct or indirect
interest in a controlled foreign company (CFC)?
Have you ever, either directly or indirectly, caused
the transfer of property – including money –
or services to a non-resident trust estate?
,
.00
(when
, completed)
Page 13
.00
I
NO
YES
CFC income
K
,
W
NO
YES
Transferor
trust income
,
B
,
,
.00
,
.00
,
.00
,
.00
,
.00
20 Foreign source income and foreign assets or property
Assessable foreign source income E
,
,
.00
Other net foreign employment income
T
Net foreign pension or annuity income WITHOUT
an undeducted purchase price
L
Net foreign pension or annuity income
WITH an undeducted purchase price
D
Net foreign rent
R
,
,
,
,
LOSS
LOSS
LOSS
LOSS
LOSS
Example – Annual Tax Statement
Taxation Statement Summary
For Period 1 July 2013 to 30 June 2014
,
Net farm management
deposits or repayments
have a capital gains
18 Capital gains Didtaxyou
event during the year? G NO
Have you applied an
exemption or rollover?
YES
,
NO
YES
H
Net capital losses carried
continued
forward to later income years
,
V
,
Foreign entities
Gross rent P
19 Rent
21
Did you have either a direct or indirect
interest in a controlled foreign company (CFC)? I NO
deductions
Have you ever, either directlyInterest
or indirectly,
causedQ
the transfer of property – including money – W NO
or services to aCapital
non-resident
trust estate?F
works deductions
,
YES
, YES
,
.00
A
,
K
,
B
,
.00
CFC income
.00Transferor
trust income
.00
,
Other
foreign employment
andnetfriendly
societies income W
T
22 Bonuses from life insurance companies
,,
Net foreign pension or annuity income WITHOUT
an undeducted purchase price
23 Forestry managed investment scheme income
Net foreign pension or annuity income
WITH an undeducted purchase price
Category 1
Type of
INCOME
continued
24 Other income
Net foreign rent
income
Category 2
.00 income
Gross rent P
21 Rent
Other net
, foreign source
withheld
– lump
sum
Also include at F AustralianTax
franking
credits
from
a
Australian franking..credits
from
00
E
Interest
,,
payments
in arrears
New Zealand franking company that
you deductions
have
received
00company
Q
a New Zealand
franking
indirectly through a partnership or trust distribution.
..00 LOSS
Taxable
professional
income
Net foreign
employment
– Z
Capital
works income
deductions
,,
00
.00
F
U
payment summary
,
,
For the amounts in the right-hand
Net
. .column
rental deductions
Exempt foreignOther
employment
income NU
00 rent
TOTAL SUPPLEMENT
, , up all the00
at items 13 to 24 add
income
amounts and deduct any loss .amounts.
INCOME OR LOSS
Foreign income tax offset
.00
AL
D
Y
R
V
M
F
,,
,
,
,
,
,
, P
,
.00
,
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,,
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00
00
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,,
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,
.
00
,
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,
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,
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2
5
2
,
less ( Q + F + U ) .00
..00
00
W
,
,
.00
A
,
,
.00
Category 1
Y
,
,
.00
Category 2
V
,
,
.00
Y
,
,
.00
Tax withheld – lump sum
payments in arrears
E
,
Deductible amount of undeducted purchase price
D11 of a foreign pension or annuity
Taxable professional income Z
,
For the amounts in the right-hand column
D12 Personal superannuation contributions
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
TAX RETURN FOR INDIVIDUALS (supplementary section) 2014
.00
.00
LOSS
,
,,
Sensitive (when completed)
TOTAL SUPPLEMENT
Full name
INCOME
of fundOR LOSS
,
P less ( Q + F + U )
,,
Transfer this amount to I
During the year did you own, or have
an interest in, assets located outside Australia P NOon pageYES
3 of your tax return.
investment
scheme income
whichForestry
had a totalmanaged
value of AUD$50,000
or more?
23
DEDUCTIONS
.00
$
4 societies
3 9 4
O
and friendly
,
22 Bonuses from life insurance companies
Type of
income
,
.00
20 Foreign source income and foreign assets or property .
Net
Other rental deductions
00 . rent
,
Assessable foreign source incomeUE
,
, 2 5 2 00
Page 14
LOSS
CODE
M
Total current year capital gains
24 Other income
,
.00
You must print X in the YES box at G if you had an
amount of capital gains from a trust.
Net capital gain
INCOME
E
LOSS
$
H
,
,
,
,
.00
.00
D13 Deduction for project pool
D
,
,
.00
DEDUCTIONS
D14 Forestry managed investment scheme deduction
F
,
,
.00
Y
E
,,
,,
..00
00
J
,
,
.00
H
$
,
,
,
,
.00
.00
D13 Deduction for project pool
D
,
,
.00
D14 Forestry managed investment scheme deduction
F
,
,
.00
Other deductions – not claimable at items D1 to D14
Election
Sensitive (when completed)
or elsewhere on your tax return
expenses E
,
,
.00
Page 15
J
,
,
.00
$
,
,
.00
at items 13 to 24 add up all the income
Account
amounts and deduct
numberany loss amounts.
Transfer this amount to I
on page 3 of your tax return.
Fund Australian
business number
Fund tax
file number
Deductible
amount– of
price
deductions
notundeducted
claimable atpurchase
items D1
to D14
D11 Other
D15
of
foreign pension
annuity
or a
elsewhere
on yourortax
return
Description
Expenses
superannuation
contributions
D12 Personal
of claim Investment
Full name
of fund
TOTAL
SUPPLEMENT
Fund Australian
DEDUCTIONS
business
number
Fund tax
file number
Election
expenses
Other
deductions
Account
Add up allnumber
the deduction amounts
in the right-hand column.
Transfer this amount to D
on page 4 of your tax return.
TAX D15
RETURN FOR INDIVIDUALS (supplementary section) 2014
Description
of claim
TOTAL SUPPLEMENT
DEDUCTIONS
Other
deductions
Add up all the deduction amounts
in the right-hand column.
If the amount does not exceed $1,000,
you are entitled to a credit for the full
amount received. If the amount is more
than $1,000 you can do one of the
following:
1. Simply claim a tax offset of $1,000.
2. Calculate the amount of foreign
income tax offset to which you are
entitled. To do this you will need a
copy of the ATO publication ‘Guide
to foreign income tax offset rules’.
Download from the ATO website
www.ato.gov.au/instructions2014
or call 1300 720 092.
The amount of foreign tax credit you
are entitled to is entered at label O of
Item 20, ‘Foreign income tax offset’ on
your 2014 supplementary section.
ITEM D15 OTHER DEDUCTIONS
There are five different numbers that
may need to be added together for the
purposes of this item.
The first number to be added is the
amount shown on your tax statement
as ‘Fees & Charges’.
The second number relates to put
option premium payments and only
applies if you participated in Series 1
of Perpetual Protected Investments.
There are no put option premium
payments in Series 2 or Series 3.
The Tax section of the product
disclosure statement for Perpetual
Protected Investments – Series 1 sets
out the conditions under which up
to 85% of option premium payments
should be an allowable deduction
for tax purposes. If you meet these
conditions then the second number
to be added for the purpose of Item
D15 is 85% of the amount shown on
your tax statement as the ‘Total’ for
‘Other Expenses’.
Any part of a put option premium
payment that is not deductible, along
with any non-deductible interest
forms a cost base for capital gains tax
purposes. If you have fully withdrawn
from one or more investment
strategies during the year you will
have disposed of this asset for capital
gains tax purposes and will have a
capital loss equal to the cost base for
that investment strategy. This loss can
be added to the losses described above
under the heading ‘Item 18 Capital
gains’. It is in addition to any losses
shown on your tax statement.
The fifth number to be added is any
deductible expenses from sources other
than Perpetual Protected Investments
that have not been claimed elsewhere in
your tax return.
Enter the total of these five numbers at
label J of Item D15 of the tax return on
your 2014 supplementary section.
Write ‘Investment expenses’ in the box
called ‘Description of claim’.
The third number to be added is the
deductible part of the interest you have
paid on your loan along with any break
costs or early repayment fees. These
payments are shown on the Statement
of Account for your loan.
The Tax sections of the Perpetual
Protected Investments product
disclosure statements set out the
conditions under which interest may
be deductible. Be sure to consult the
product disclosure statement for the
Series in which you have participated
as the tax law changed between Series.
For Series 2 and 3 the tax opinions
from the product disclosure statement
can be found online at ww.perpetual.
com.au/structuredproducts.
The break costs and early repayment
fees are deductible to the same extent
that the interest is deductible.
The fourth number to be added is any
part of any adviser service fee that is
deductible. If adviser service fees were
processed as part of your participation
in Perpetual Protected Investments
they will be shown on the Statement of
Account for your loan. The deductibility
of an adviser service fee depends on
why the amount was paid.
If you require more
information please consult
your tax adviser or the ATO.
This information was prepared and issued by Perpetual Investment Management Limited ABN 18 000 866 535, AFSL 234426, part of the Perpetual
Group (Perpetual Group means Perpetual Limited ABN 86 000 431 827 and its subsidiaries), as general information only and is believed to be
accurate at the time of compilation. The information in this guide is based on information published by the Australian Taxation Office. No company in
the Perpetual Group, nor the directors and officers of companies in the Perpetual Group, nor Perpetual Investment Management Limited in its capacity
as responsible entity of the fund, make any representation or warranty as to the accuracy, reliability, or completeness of material in this document.
Except in so far as liability under any statute cannot be excluded, companies in the Perpetual Group and directors, employees and consultants of
companies in the Perpetual Group, do not accept any liability (whether arising in contract, tort or negligence or otherwise) for any error or omission
in this material or for any loss or damage (whether direct, indirect consequential or otherwise) suffered by the recipient of this information or any
other person. The tax information contained is this document is not tax advice and should not be relied upon as such. You should obtain professional
taxation advice in relation to your individual circumstances. 1901_HCPITG7_220814
MORE INFORMATION
PPI Client Services 1800 002 513
Email [email protected]
www.perpetual.com.au

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