Information for End of Financial Year

Questions and answers for financial year-end 2017

> Financial Year End Statements

> Unit price and transaction delays

Unit pricing and distributions

A unit price reflects the value of a fund’s investments, including any income accrued but not yet distributed. When distributions are paid, the unit price will usually decrease by an amount equal to the distribution. As a result, if your fund pays a distribution on 30 June, the unit price will generally decrease on the same day by the same amount.

Please note that if you fully withdraw units from your fund before 30 June, you will not receive distributions for those units. If you partially withdraw units from your fund you will only receive a distribution for the units you still hold at 30 June.

Finalising year-end unit prices is a detailed process and takes time due to distribution calculations and auditing requirements. We expect unit prices for Perpetual’s funds to be available from mid-July.

For external fund manager investment options, we rely on external fund managers to provide the information. This means it will take longer to finalise and we expect unit prices for external fund manager investment options to be available by late July.

The reinvestment of your 30 June distribution will be processed with an effective date of 1 July using the fund’s post-distribution price. This reinvestment amount will be incorporated into the opening balance on your Annual Statement for the following financial year, and will not appear as a separate transaction on your 2016/17 statement. 

In general, distributions that occur during the year reflect income only. If capital gains have been realised during the financial year, these are generally distributed in the June distribution.

Distributions (if any) that will be reinvested are referred to as a ‘distribution awaiting reinvestment’. For example, if you receive a distribution for the period ending 30 June that you intend to reinvest, that amount is referred to as the ‘distribution awaiting reinvestment’ on 1 July of the following financial year. This is due to unit price delays and once received this will appear as Distribution reinvested. On your Annual Statement for the following financial year, the reinvestment amount will be incorporated into the opening balance and will not appear as a separate transaction.

During July there may be delays in issuing unit prices as we finalise year-end distributions. While unit prices are unavailable, we are not able to process transactions, including withdrawals.

Please note that this delay will not affect the value of your investment or the value of any transactions made during the year-end period. When unit prices are issued, transactions will be processed for the day they were received and accepted.

We will endeavour to obtain the prices and process transaction requests as quickly as possible.

Tax statements

For Perpetual WealthFocus Investment Advantage, if you have withdrawn all or part of your investment during the year ended 30 June 2017, we expect to send you a Capital Gains Tax Statement by late July 2017 to assist you in preparing your 2017 income tax return.

We do not provide a Capital Gains Tax Statement if you have withdrawn units from any other Perpetual products.

If you require information to help you calculate capital gains/losses realised during the year ended 30 June 2017, please email us at and request a Full Transaction Summary, quoting your client number and/or account number.

To complete Tax Statements, we require full financial year-end information for each investment funds. This may include actual year-end financial information from external fund managers.

We finalise Tax Statements as soon as we receive all the relevant information, however the information from external fund managers may not be received until late August.

Tax Statements are issued to resident investors (pension members who are less than 60 years of age and investors who hold unit trust investments) who have held units at any time during the 2017 financial year. This includes investors who have fully withdrawn units and have not received a distribution(s) during the financial year. Pension members who are over 60 years of age and super members are not issued Tax Statements.

The Tax Statement helps you to complete your income tax return. We also provide a guide to help you understand your Tax Statement. We recommend that you seek help from your financial and/or tax adviser or the ATO when completing your income tax return, as we are unable to provide you with tax advice. Please refer to  "What statements will be issued and when?" for information on mailing times.

When we mail statements that contain information required to be included in your 2016/17 income tax return, we will enclose a tax guide to help you.

You should also refer to the information available on the ATO website.

Franked dividends are received from Australian companies that have paid Australian company tax on their earnings. A franking credit attached to a dividend reflects the amount of tax that has already been paid by the company issuing the dividend.

When a fund receives a franked dividend, the fund may be eligible to pass on the attached franking credits to investors. The franking credit will partly or fully cover the tax payable on the distribution paid to you.

Unfranked dividends are received from Australian companies that have not paid any Australian company tax on their earnings.

Dividends unfranked (CFI) are unfranked dividends received from Australian companies that have declared this amount to be 'conduit foreign income'. These dividends are simply treated as 'unfranked' dividends by Australian resident investors. This distinction is only relevant for non-resident investors and custodians.

Capital gains made by the funds have been split between 'TARP' (gains relating to taxable Australian property) and 'NTARP' (relating to non-TARP gains). This distinction is not relevant for Australian resident investors but may be relevant for non-resident investors and custodians.

The amount shown under the Discount Method is the gross amount before applying any discount. The capital gains tax discount is 50% for individuals and trusts (other than complying superannuation entities) and 33.3% for complying superannuation entities. Companies are not entitled to a capital gains tax discount.

The capital gain disclosed in the Discount Method column on the Capital Gains Tax Statement represents the gross amount of the capital gain (ie before application of any discount percentage).

Tax-deferred and tax-free distribution components attributable to your investment in Perpetual WealthFocus Investment Advantage have been taken into account, where required, to determine the realised capital gain or loss shown on your Capital Gains Tax Statement.

From 1 July 2017 the earnings from assets supporting Transition to Retirement (TTR) income streams will be taxed at 15%. These are currently tax-free. To comply with this change, effective 1 July 2017, we’ll be moving holdings in TTR pensions from zero taxed investment options to taxed (at 15%) investment options with the same investment strategy. This will change the number of units and unit price of holdings but won’t impact the total balance. As the earnings of TTR income streams are taxed, balances in TTR income streams are not included within the $1.6 million transfer balance cap.

Once you meet a condition of release from superannuation, such as turning 65, your TTR pension converts to an account based pension. Your balance will then count towards the $1.6 million transfer balance cap.

Pensions, withdrawal plans, savings plans

We will process your July 2017 pension payment when it is due using the last available exit price.

Investors in the Perpetual WealthFocus Pension Plan and Perpetual Select Pension Plan can change their pension payments for 2017/18 by completing and returning the pension changes form they will be mailed with their pension pack in July 2017. 

Age range           Percentage of account balance - standard
Under 65 4%
65 - 74 5%
75 - 79 6%
80 - 84 7%
85 - 89 9%
90 - 94 11%
95+ 14%

Yes, we expect the regular withdrawal plan to be affected by the unit pricing delays. We will need to wait until the unit prices come in for all funds before regular withdrawal plan payments are processed. Once we have the unit prices, clients should expect to receive their funds within five to seven business days.

Your bank account will be debited as normal, however we will need to wait until the unit prices are available for all funds before your money can be processed into your account. This delay won’t impact you – as you will receive the unit price for the effective date of your savings plan.

‘Capital growth/loss’ is the unrealised difference between the opening balance at the beginning of the financial year (1 July) and the closing balance at the end of the financial year (30 June).

The ‘Return on investment’ (where applicable) is made up of unrealised capital growth/loss, gross distributions received, Adviser Service Fee payments, Management Expense Ratio (MER) rebates received and ongoing commission rebates received, if applicable, during the financial year.

Yes, high-income earners earning more than $250,000 p.a. from July 2017 (previously $300,000) will be affected by the Division 293 tax. This means that an additional 15% contributions tax will be applied on excess contributions above the $250,000 threshold.

You will now be able to contribute to your spouse’s superannuation account and receive a tax offset if your spouse earns less than $40,000 p.a. (previously $13,800). The maximum rebatable contributions remain at $3,000 and the offset at $540. The maximum offset will begin to reduce if your spouse’s income exceeds $37,000 (previously $10,800).

Concessional contribution caps are now $25,000 p.a. for everyone (previously $30,000 if <49 years old; $35,000 if 49 or older). Non-concessional contribution caps will be $100,000 p.a. (previously $180,000 p.a.) and applying the bring-forward rule $300,000 p.a. (previously $540,000). A transitional period cap will also apply if the bring-forward rule is triggered in the FY 2015/16 ($460,000) or 2016/17 ($380,000).
From July 2017, investment earnings for TRIP accounts will no longer be exempt from earnings tax, and a TRIP will no longer be considered to be in pension phase.

A transfer balance cap will now apply with a limit of $1.6 million that can be transferred from superannuation to pension. Funds above that amount will need to remain in superannuation where earnings are taxed at 15%. Any funds in excess of the cap must be transferred back to super or withdrawn, otherwise be subject to an excess transfer balance tax.

The tax rate is set at 15% for an excess transfer balance in FY 2017/18. If, on 1 July 2017, you are over your transfer balance cap by $100,000 or less and you remove the excess by 31 December 2017, you will not have to pay excess transfer balance tax. From 1 July 2018 onwards, the tax rate is 15% the first time you have an excess transfer balance, but increases to 30% if you have an excess transfer balance for a second or subsequent time.

We have received an extension from the Australian Tax Office with respect to the date that 2017 PAYG payment summaries need to be issued. The PAYG payment summaries for Perpetual WealthFocus Pension Plan and Perpetual Select Pension Plan will be lodged with the mailhouse on or about 17 July.