Tax

Like all investments, managed fund investments have tax implications. Tax works two ways. You may be liable to pay tax on distributions and capital gains when you sell your investment. On the other hand, some investment strategies attract tax credits.

It's all in the planning

Income and tax go together

Your fund distributions include income, such as interest and dividends, that is taxed at your marginal tax rate. If the dividends have been franked, you will also receive franking credits.

As an individual investor, you may be eligible for the 50% capital gains tax discount on certain capital gains where you have held the asset for more than a year.

Check your PDS

The Product Disclosure Statement (PDS) for your fund will include taxation information.

Love your paperwork

You will need the paper trail that documents your managed fund records. It doesn't have to be complicated. Dividends can be paid directly into your bank accounts, where they will appear on your bank record. Annual statements will also detail your distributions, capital gains and losses.

You can gain tax benefits from imputation

Some Australian shares distribute franked dividends with franking credits attached. This means that the dividend is paid out of the company's after-tax profits.

As a result, you may be able to claim a tax offset for the amount of tax already paid by the company. Note that not all Australian shares distribute franking credits.

Don't let tax drive your strategy

Focus on achieving your financial goals. A financial adviser will advise you on the tax implications of your investment.

If you are a BT investor...

Our tax guides can help you complete your tax returns.
You can access BT's PDS forms online.

Find out more about investment

Download a copy of 'Investing made easy' (PDF 1.73MB).
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's managed funds.