Hey folks,
Just started working on my tax returns as I was waiting for my annual tax statements from my ETFs. This is the first financial year with any ETF purchase for me, so all a bit new from a tax-filing perspective. I have purchased VAS and VDHG in small lots over the course of the year. I haven't made any sale of units during the year.
I notice that the VAS statement doesn't have any capital gains but I see some Net Capital Gains for VDHG which I apparently need to enter in the "managed funds" section of the MyGov tax form.
Can someone please clarify why capital gains has been computed without any sale of asset (in this case the units of the ETF)? Am I actually paying tax on "notional gains?" What would happen in the event that I actually sell some or all of the units at a later stage?
I have kept my tax filing on hold till I figure this aspect out.
I don't want to approach an accountant and pay him/her just to have this query answered. I do not have any queries with the actual form filling itself. I am clear which part of the tax statement goes where in the form. It's the capital gain aspect mentioned in the ETF Tax statement that confuses me.
Thanks!
The fund buys and sells to manage their holdings. The capital gains are attributed to that.