Author Topic: Australian Investing Thread  (Read 2557308 times)

lush

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Re: Australian Investing Thread
« Reply #4100 on: July 06, 2018, 04:56:39 AM »
You'll need to identify which units you are selling to make up the $50k. The ASX doesn't care and thinks they're all the same, but the ATO does.

https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Identifying-when-shares-or-units-are-acquired/

Basically you don't use averages at all.

Thanks for this article. It is very helpful. It looks like you can the determine the units to baseline against  - which in some ways seems a bit flawed, as I guessing most people woud choose units to be suit / limit their CGT impacts.

Also there was this quote at the end of the article about averages:

We'll also accept an average cost method to determine the cost of the shares disposed of if:

    the shares are in the same company
    the shares were acquired on the same day
    the shares have identical rights and obligations
    you're not required to use market value for cost base purposes.

Grogounet

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Re: Australian Investing Thread
« Reply #4101 on: July 09, 2018, 03:28:06 PM »
thanks for the note at the end of the article and it leaves me to say that there is still room for interpretation. i m still find an accountant who REALLY understand what he is talking about and doesn t charge a ridiculous amount for it.

lush

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Re: Australian Investing Thread
« Reply #4102 on: July 09, 2018, 04:31:47 PM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.


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Re: Australian Investing Thread
« Reply #4103 on: July 09, 2018, 04:54:52 PM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.
« Last Edit: July 09, 2018, 05:34:49 PM by Notch »

lush

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Re: Australian Investing Thread
« Reply #4104 on: July 11, 2018, 02:11:36 AM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.

Thanks Notch. I guess that's why each June payout (in the past) has been so significant. However overall do you think this will have a negative or postive impact for investors?

marty998

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Re: Australian Investing Thread
« Reply #4105 on: July 11, 2018, 05:28:33 AM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.

Thanks Notch. I guess that's why each June payout (in the past) has been so significant. However overall do you think this will have a negative or postive impact for investors?

It's a positive. It's designed to stop instances where for example a large investor invests into the fund on say June 29, and materially changes the allocation of the income earned between all investors for that quarter.

I am far too distracted watching Origin to write an example, but I think you can figure it out ;)

Grogounet

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Re: Australian Investing Thread
« Reply #4106 on: July 11, 2018, 07:45:06 PM »
Still very confusing and I guess so confusing you can contest in case of issue with the ATO.

mjr

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Re: Australian Investing Thread
« Reply #4107 on: July 12, 2018, 02:18:51 AM »
Still very confusing and I guess so confusing you can contest in case of issue with the ATO.

That is NOT how the ATO works.  If you're confused, that's your problem.  While they're mostly happy to help answer questions, they're not particularly interested if you try and contest their opinion.
« Last Edit: July 12, 2018, 02:20:47 AM by mjr »

lush

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Re: Australian Investing Thread
« Reply #4108 on: July 12, 2018, 05:44:28 PM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.

Thanks Notch. I guess that's why each June payout (in the past) has been so significant. However overall do you think this will have a negative or postive impact for investors?

It's a positive. It's designed to stop instances where for example a large investor invests into the fund on say June 29, and materially changes the allocation of the income earned between all investors for that quarter.

I am far too distracted watching Origin to write an example, but I think you can figure it out ;)

Thanks Marty - yep I get it now! Cheers!

mjr

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Re: Australian Investing Thread
« Reply #4109 on: July 20, 2018, 04:06:49 PM »
Did anyone get their VTS dividend payment yesterday ?  Mine are nowhere to be seen.

FFF

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Re: Australian Investing Thread
« Reply #4110 on: July 20, 2018, 05:30:58 PM »
Did anyone get their VTS dividend payment yesterday ?  Mine are nowhere to be seen.

Likewise mjr, nothing received for VTS and VEU either. It’s usually in my ING account by the evening so glad to hear I’m not the only one. I’m sure it’ll be in on Monday, hopefully it’s just because the payment was made on a Friday this time - can’t wait for the NPP to be fully functional!

Primm

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Re: Australian Investing Thread
« Reply #4111 on: July 21, 2018, 11:54:58 PM »
Did anyone get their VTS dividend payment yesterday ?  Mine are nowhere to be seen.

Likewise mjr, nothing received for VTS and VEU either. It’s usually in my ING account by the evening so glad to hear I’m not the only one. I’m sure it’ll be in on Monday, hopefully it’s just because the payment was made on a Friday this time - can’t wait for the NPP to be fully functional!

Same. Got the email but no money.

No Money No Problems

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Re: Australian Investing Thread
« Reply #4112 on: July 25, 2018, 06:09:16 AM »
Long time lurker first time poster.

I'm 32 and have no share investments and no super.

If I have a 30 year investment horizon, am I best served by plowing my money into super e.g. hostplus vs investing in the index outside super, because of tax benefits?




itchyfeet

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Re: Australian Investing Thread
« Reply #4113 on: July 25, 2018, 10:35:45 AM »
I’d do a bit of both. It depends on your salary but the tax incentives of Super are significant. ON the other hand it’s also nice to have a stash that you don’t have to wait till 60 to access.

deborah

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Re: Australian Investing Thread
« Reply #4114 on: July 25, 2018, 01:20:55 PM »
Long time lurker first time poster.

I'm 32 and have no share investments and no super.

If I have a 30 year investment horizon, am I best served by plowing my money into super e.g. hostplus vs investing in the index outside super, because of tax benefits?




It depends upon how much you can save. You currently have a 30 year investment horizon, which I assume means that you think you’re only saving enough to retire at 62. In that case, you would have access to your super, and putting most into super is a reasonable way to go.

However, if you tackle your expenses, and get them to 20% of your income, you would be saving 4 years of expenses each year, and could retire in 6 years. In that case, keeping all your money outside super would be the way to go.

If you have only just found MMM, and you like the idea of retirement, I suggest starting by investing outside super for the first year, while you adjust your spending patterns. This gives you funds you can use before you retire for doing things like buying a house. Then in a year, you can review what you’re doing.

You can now play catch-up with super (from this year they will allow you to put in up to five years of concessional contributions that you haven’t made - this year is year 1). So you could invest outside super for up to 5 years while you are working out exactly when you think you can retire without any penalties.


MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4115 on: July 25, 2018, 01:55:17 PM »
Long time lurker first time poster.

I'm 32 and have no share investments and no super.

If I have a 30 year investment horizon, am I best served by plowing my money into super e.g. hostplus vs investing in the index outside super, because of tax benefits?

Because of the tax advantages the way I’d go is to get that $25k Max into your Super and then any excess into Vanguard. If you have no super, now’s the time to build it up. But if you’re 32 and no super something special must be going on in your situation so without more info, it’ll be tough for people to advise.

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Re: Australian Investing Thread
« Reply #4116 on: July 25, 2018, 08:45:07 PM »

Because of the tax advantages the way I’d go is to get that $25k Max into your Super and then any excess into Vanguard. If you have no super, now’s the time to build it up. But if you’re 32 and no super something special must be going on in your situation so without more info, it’ll be tough for people to advise.

Its funny in a way because when I was a kid I was a Mustachian through and through. I had 80k saved by the time I was 19. Then due to a change in circumstance I went over to the dark side and ended up travelling for several years before settling back in Oz.

I have no personal debt. I run my own company hence no super. I owe 350k on my mortgage (aim to pay this off in next 10 years)

I can put 250-500 a week into index or super per week from this point and thank you Deborah for the advice regarding putting in 5 backdated years of concessional contributions that might be a good interim solution.

Reading these forums is a little overwhelming as I look back at the last 10 years of my life. Small changes here and there could have resulted in a nice little retirement pot hence why I now have a 30 year time frame.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4117 on: July 25, 2018, 09:53:56 PM »

Because of the tax advantages the way I’d go is to get that $25k Max into your Super and then any excess into Vanguard. If you have no super, now’s the time to build it up. But if you’re 32 and no super something special must be going on in your situation so without more info, it’ll be tough for people to advise.

Its funny in a way because when I was a kid I was a Mustachian through and through. I had 80k saved by the time I was 19. Then due to a change in circumstance I went over to the dark side and ended up travelling for several years before settling back in Oz.

I have no personal debt. I run my own company hence no super. I owe 350k on my mortgage (aim to pay this off in next 10 years)

I can put 250-500 a week into index or super per week from this point and thank you Deborah for the advice regarding putting in 5 backdated years of concessional contributions that might be a good interim solution.

Reading these forums is a little overwhelming as I look back at the last 10 years of my life. Small changes here and there could have resulted in a nice little retirement pot hence why I now have a 30 year time frame.

Great, well, if you can put in $500/week to super, do it! As Deborah said, if you plan to work for 30 more years, use super as your main vehicle.

Also, The Barefoot Investor is pretty good, simple to read and grasp and tailored for Australians.
« Last Edit: July 25, 2018, 09:55:36 PM by MrThatsDifferent »

deborah

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Re: Australian Investing Thread
« Reply #4118 on: July 25, 2018, 11:22:48 PM »
https://www.moneymanagement.com.au/features/carry-forward-unused-concessional-contributions-cap

This is an interesting article on benefits of using the 5 year rule in different scenarios.

Andy R

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Re: Australian Investing Thread
« Reply #4119 on: July 31, 2018, 10:30:15 AM »
Sorry for the possibly stupid question, but I don't quite understand the point of bonds vs a high interest savings account.
I've heard that stocks have returned about 6% real and bonds 2% real over the past whatever long time period, but I see nowhere that bonds are returning 2% over inflation which would be around 4%. In fact VFI/VGB are around 2%, which is about the same as inflation meaning no real return, and lower than RAMS high interest savings account.

I am aware we are at the end of a multi-decade bonds bull run with interest rates going to crazy heights a few decades ago and steadily coming down over this very long period driving the bonds market, but this is not only in Australia, so I don't quite get why people (outside of Australia also) continue to suggest bonds over just keeping cash, and also the fact that both of them seem to have no real return at all after inflation, which is very unlikely to change for a very long time since interest rates are at crazy low levels and has only one way to go.

Could someone please tell me what I must be completely missing here? Where exactly is the return with bonds that people continue to recommend them?
« Last Edit: July 31, 2018, 10:53:28 AM by Andy R »

deborah

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Re: Australian Investing Thread
« Reply #4120 on: July 31, 2018, 11:29:15 AM »
Like shares and property and cash and gold, bonds are a completely separate investment stream. In the past (pre GFC), bonds gave good returns when other investments were giving poor returns. This has made them an extremely good diversification tool in your portfolio. Unfortunately the link appears to have broken, and they have been less valuable in portfolios since the GFC.

mjr

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Re: Australian Investing Thread
« Reply #4121 on: July 31, 2018, 09:59:10 PM »
It is my view as well that bonds are not a good investment at this stage of the interest rates cycle.

Bonds are and have been always more popular in the US, probably due to lower interest rates on savings accounts/CDs.

Bond yields now are mediocre at best compared to term deposit rates and bond prices have no where to go from here except down.

Andy R

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Re: Australian Investing Thread
« Reply #4122 on: August 01, 2018, 09:50:21 PM »
Thanks @deborah @mjr

I was not aware that that the US has lower interest on savings vs bonds unlike Australia, but that would make sense then.
I wonder what the situation will be for bonds going forward since developed economies now have a target of 2-3% inflation and will pull levers (such as interest rates) to maintain it. I wonder if that means real returns for bonds will remain at or close to zero as the new norm.
Certainly sux that there is basically no real return now, as bonds or savings accounts both match inflation and are not over, but I guess you take what you can get when there is no other option for low risk returns =/
Definitely seems wacky that bonds can return equal or lower than cash though.

I see people putting some money in international REIT's, infrastructure, and utilities as a lower risk lower return (more as you move from left to right in that list), but that's still not exactly low risk the way bonds are.

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Re: Australian Investing Thread
« Reply #4123 on: August 05, 2018, 01:49:10 AM »
The main difference is that there is a capital gain/loss component to bonds.

The remaining term on the bond "amplifies" the capital gain/loss.

Think of it as a hedge against a period of deflation. A couple of years ago all economist talking heads were saying that the ex-Japan developed world was heading toward a similar situation as Japan, ie low growth, dipping into deflation. As a result the price of long term bonds shot through the roof (I don't have Australian data but US 20+ year term bonds went up 25% in 2014). Things back to normal now, so probably a good time to be cautiously accumulating them.

marty998

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Re: Australian Investing Thread
« Reply #4124 on: August 10, 2018, 07:35:32 PM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

Eucalyptus

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Re: Australian Investing Thread
« Reply #4125 on: August 10, 2018, 08:40:20 PM »
Not for me as I have a mortgage to offset, but my Sister and BIL got an ING savings account the other day at 2.8%. She said it was really easy to set up. To get the 2.8% they have to deposit $1000 a month, and make at least 5 transactions on the attached debit account (which came with a debit card (one for each of them) and can eft etc).


Is 2.8% about as good as it gets at the moment for cash savings?

PDM

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Re: Australian Investing Thread
« Reply #4126 on: August 10, 2018, 09:59:47 PM »
Not for me as I have a mortgage to offset, but my Sister and BIL got an ING savings account the other day at 2.8%. She said it was really easy to set up. To get the 2.8% they have to deposit $1000 a month, and make at least 5 transactions on the attached debit account (which came with a debit card (one for each of them) and can eft etc).


Is 2.8% about as good as it gets at the moment for cash savings?

Sounds worse than RAMS.

https://www.rams.com.au/savings-and-transactions/rams-saver/

3%. $200 per month and don't make any withdrawals.

The needing to make 5 transactions would annoy me. Particularly if ING wasn't my main bank. I also dislike having too many cards.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4127 on: August 10, 2018, 10:00:28 PM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

I went online and got mine.

mjr

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Re: Australian Investing Thread
« Reply #4128 on: August 10, 2018, 11:57:11 PM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

I went online and got mine.

For the managed funds?  Because Computershare have indicated that the ETF  statements are not coming out until mid-August.


MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4129 on: August 11, 2018, 02:33:35 AM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

I went online and got mine.

For the managed funds?  Because Computershare have indicated that the ETF  statements are not coming out until mid-August.

I have the life strategy retail fund

BattlaP

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Re: Australian Investing Thread
« Reply #4130 on: August 12, 2018, 03:26:50 AM »
Yeah someone wake me up when eTax autofills Vanguard managed funds, I don't even bother until then

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Re: Australian Investing Thread
« Reply #4131 on: August 14, 2018, 12:09:56 AM »
Hi guys,

I'm sure this has been asked a million times before - but I could not find it myself.

Is there a 'standard' index fund, or group of index funds that you would recommend investing in to get a portfolio started?

FYI I'm 31, no investments outside of my PPOR and Super. Aiming for financial independence by 50.

Thank you!

deborah

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Re: Australian Investing Thread
« Reply #4132 on: August 14, 2018, 12:27:54 AM »
Hi guys,

I'm sure this has been asked a million times before - but I could not find it myself.

Is there a 'standard' index fund, or group of index funds that you would recommend investing in to get a portfolio started?

FYI I'm 31, no investments outside of my PPOR and Super. Aiming for financial independence by 50.

Thank you!
A fair bit of this thread is devoted to looking at different people’s different allocations. You could do worse than reading the thread and see what ideas you have at the end. It’s messy, but it might help you in other ways as well.

kiwiozearlyretirement

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Re: Australian Investing Thread
« Reply #4133 on: August 14, 2018, 08:17:23 AM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?

Eucalyptus

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Re: Australian Investing Thread
« Reply #4134 on: August 16, 2018, 03:36:18 AM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?


To save people time looking it up:
https://www.betashares.com.au/fund/australia-200-etf/


The fund inception date was 7 May 2018 and from what I can tell there has only been one dividend distribution so far...assuming that would only be for a partial quarter, which could explain the relative lower dividend? Or I could be missing something?




marty998

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Re: Australian Investing Thread
« Reply #4135 on: August 17, 2018, 08:29:14 PM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?


To save people time looking it up:
https://www.betashares.com.au/fund/australia-200-etf/


The fund inception date was 7 May 2018 and from what I can tell there has only been one dividend distribution so far...assuming that would only be for a partial quarter, which could explain the relative lower dividend? Or I could be missing something?

Also sounds like Beta Shares started at $100 whereas VAS started at $50 a unit many years ago.

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Re: Australian Investing Thread
« Reply #4136 on: August 18, 2018, 05:20:08 PM »
Just bought $20k of VEU and keeping a large chunk in cash, wondering if the bull market will last for long...

ATO says that: You can't claim a deduction for some costs related to purchasing your shares, such as brokerage fees and stamp duty, but you can include them in the cost base (cost of ownership - which you deduct from what you receive when you dispose of the shares) to work out your capital gain or capital loss.
Is it a simple pro-rata for the purchase, like $100 for 200 shares so $0.5 per share of brokerage fee, and the same when you sell?

mjr

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Re: Australian Investing Thread
« Reply #4137 on: August 18, 2018, 05:56:09 PM »
The brokerage fees on buying is a capital cost which becomes part of the cost base.  Your buy example is correct.

When you're selling, the brokerage costs are apportioned equally across the number of shares you are selling and lower the capital gain.


kiwiozearlyretirement

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Re: Australian Investing Thread
« Reply #4138 on: August 20, 2018, 08:56:09 AM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?


To save people time looking it up:
https://www.betashares.com.au/fund/australia-200-etf/


The fund inception date was 7 May 2018 and from what I can tell there has only been one dividend distribution so far...assuming that would only be for a partial quarter, which could explain the relative lower dividend? Or I could be missing something?

Also sounds like Beta Shares started at $100 whereas VAS started at $50 a unit many years ago.

thanks for your ideas. But even if Beta shares are $100 you might except the dividend distribution to be half of VAS for example. Not 20% of it.  It shouldn't matter if it is a partial quarter as you just have to own the shares on the distributions record date. Unless some companies paid distributions early that quarter e.g. April.

Guess I will watch them

Gremlin

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Re: Australian Investing Thread
« Reply #4139 on: August 20, 2018, 07:27:48 PM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?


To save people time looking it up:
https://www.betashares.com.au/fund/australia-200-etf/


The fund inception date was 7 May 2018 and from what I can tell there has only been one dividend distribution so far...assuming that would only be for a partial quarter, which could explain the relative lower dividend? Or I could be missing something?

Also sounds like Beta Shares started at $100 whereas VAS started at $50 a unit many years ago.

thanks for your ideas. But even if Beta shares are $100 you might except the dividend distribution to be half of VAS for example. Not 20% of it.  It shouldn't matter if it is a partial quarter as you just have to own the shares on the distributions record date. Unless some companies paid distributions early that quarter e.g. April.

Guess I will watch them

Most companies report yearly or half-yearly results in February.  Typically those that pay a div/distribution will then do so in March/April with an ex div date late Feb/early March.  So a fund incepting in May will "miss" most of the quarter's divs that would typically get paid in April. 

Also, any divs/distributions accruing would be based on the monies invested at the time the underlying securities were paying out.  But they need to be paid out to anyone holding the ETF when it goes ex-distribution.  For a mature fund, the difference in volumes shouldn't be that great, but for a completely immature fund, you can get some funny distributions in the first few periods.  This will settle down as the ETF matures.

asosharp

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Re: Australian Investing Thread
« Reply #4140 on: August 21, 2018, 07:07:30 AM »
Currently having a debate with someone about renting spare rooms in your home. I said that there's CGT when a non-relative rents your room.

The other person said how would the government know if a room in your house has been rented if you don't declare the income in your tax. I disagreed.

Thoughts?

deborah

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Re: Australian Investing Thread
« Reply #4141 on: August 21, 2018, 06:08:33 PM »
My understanding is that there is CGT no matter who it is unless they are an extremely close relative.

But you can negatively gear, and get paid for maintenance of the room and the common areas of the house. What’s not to like?

GT

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Re: Australian Investing Thread
« Reply #4142 on: August 21, 2018, 06:40:42 PM »
It's what the politicians do with their spouses houses/apartments in Canberra, and they also claim the allowance to pay for it.

Andy R

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Re: Australian Investing Thread
« Reply #4143 on: August 21, 2018, 07:47:25 PM »
Politicians don't rent out the spare room. They move out entirely and rent it out for up to 6 years and still get it GST free due to a specific law known as the 6 year rule.

PDM

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Re: Australian Investing Thread
« Reply #4144 on: August 21, 2018, 08:15:14 PM »
Currently having a debate with someone about renting spare rooms in your home. I said that there's CGT when a non-relative rents your room.

The other person said how would the government know if a room in your house has been rented if you don't declare the income in your tax. I disagreed.

Thoughts?
So you're not debating actual tax law - you're debating fraud.

Basically it is a question of how much fraud your friend is comfortable with. Its illegal - your friend just has to weight up the risk of getting caught (and the moral aspect of fraud). I'd be concerned about the ATO's data sharing these days. In the era of big data it wouldn't be hard at all to work out that you've rented a room in your house. So much paper trail - a lease, a bond deposited with the RTA, a regular occurring payment (or will it be cash?).

https://www.ato.gov.au/About-ATO/Access,-accountability-and-reporting/In-detail/How-we-use-data-matching/?anchor=Sources_of_thirdparty_information#Sources_of_thirdparty_information

Little Aussie Battler

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Re: Australian Investing Thread
« Reply #4145 on: August 21, 2018, 08:30:40 PM »
...or a disgruntled former tenant who notifies the ATO.

Eucalyptus

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Re: Australian Investing Thread
« Reply #4146 on: August 23, 2018, 04:04:19 AM »
...or a disgruntled former tenant who notifies the ATO.


Not hard to notify the ATO or another government agency incidentally these days. You often have to supply your residential address. Many things the ATO cross-references with information supplied to other departments.


Much better to do it properly.

marty998

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Re: Australian Investing Thread
« Reply #4147 on: August 23, 2018, 05:31:32 AM »
...or a disgruntled former tenant who notifies the ATO.


Not hard to notify the ATO or another government agency incidentally these days. You often have to supply your residential address. Many things the ATO cross-references with information supplied to other departments.


Much better to do it properly.

Not hard for the IT guys at the ATO to write a script trawling gumtree, airbnb, Facebook groups etc as well.

Eucalyptus

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Re: Australian Investing Thread
« Reply #4148 on: August 25, 2018, 04:40:07 AM »
...or a disgruntled former tenant who notifies the ATO.


Not hard to notify the ATO or another government agency incidentally these days. You often have to supply your residential address. Many things the ATO cross-references with information supplied to other departments.


Much better to do it properly.

Not hard for the IT guys at the ATO to write a script trawling gumtree, airbnb, Facebook groups etc as well.


Yep ;-)

Evasion

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Re: Australian Investing Thread
« Reply #4149 on: August 27, 2018, 02:53:02 AM »
Hello,

I am a long time lurker who recently became more serious about FI. I already own some shares through Acorns / Raiz (purchased before I realised I could do just as well myself through a broker). I also own some VDHG ETF.
I have been looking at diversifying a bit or buying something less Australian focused for my next 5k investment bundle.

Comparing VGS to IWLD it seems that the latter has lower ER (0.16 Vs 0.18), is tracking the same index, and has way lower share price (32 AUD Vs about 70)

Given that Vanguard is usually the go to company, what's the catch? Tempted to go for IWLD instead of VGS but was wondering whether I missed a difference between the ETFs.

Interested in opinions of people who own IWLD and others!

Thank you for your help and sorry if this is a noob question, first message on this thread (that I've read entirely a few months ago;))