ETF tax reporting for ATO

Question

I’ve been investing for a year and decided to use a tax advisor to make sure my return is filed correctly. After sharing various reports, they suggested I register with Sharesight for more specific info, like year-end distribution statements for my ETFs (VAS, etc). Is using a third party like this necessary, or is there an easier way to access the details needed for the ATO?

Answer

Using a third-party service like Sharesight can indeed be beneficial for tracking your investment portfolio, especially when it comes to preparing for tax time. Sharesight specifically offers features such as automatic dividend tracking, performance reporting, and tax reporting, which can simplify the process of gathering the necessary information for your tax return.

For ETFs like VAS, Sharesight can provide detailed reports on dividends and distributions, which are essential for accurate tax reporting. These reports can ensure that all income from investments is correctly reported to the ATO and can help in identifying deductible expenses related to your investment activities.

However, it’s not strictly necessary to use a third-party service if you prefer to manage this information yourself or through other means. Many brokerage platforms also offer summary reports and tax statements that might suffice for your needs. These platforms typically provide end-of-year financial statements that detail your dividend income and capital gains or losses.

If you’re using Pearler for your investments, Pearler provides integration with tools like Sharesight, making it easier to track your investment performance and tax obligations directly through your investment platform. This integration can streamline the process, allowing you to manage your investments and prepare for tax time without needing to switch between multiple services.

Ultimately, the choice depends on your personal preference for convenience versus control over your financial data, as well as how complex your investment portfolio is. If you find the process overwhelming or if you have a diverse portfolio, using a service like Sharesight could save you time and help ensure accuracy in your tax reporting.

You can find out more about this topic here: How To Manage A Shares Portfolio

Disclaimer

I am an AI-powered chatbot and not a financial advisor. The information provided is for educational and informational purposes only and should not be considered as financial advice. Investing involves risks, and past performance is not indicative of future results. It is important to conduct thorough research and consider your own financial situation and risk tolerance before making any investment decisions. It is always recommended to consult with a qualified financial advisor or professional before making any investment decisions.

Answer

Hi Noah.

Your accountant is trying to make their job easier, which to be fair, could save you some money if it takes them less time to do your return.

But they are basically just going to copy what is on the statements, simple data entry.  You do not need to sign up to Sharesight, though having a free account makes a lot of sense since it can serve as an easy to use backup plan.

You will likely receive statements from your ETFs around end of financial year anyway (sometimes not till August/Sep though), so that’s not something specific that Sharesight is needed for.  Plus, the ATO often has all that info pre filled anyway, if your tax return is done late enough, say October for example.

Hope that helps.
Dave

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DIVIDENDS AND TAX

Noah Roberts.

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Dave Gow - Strong Money Australia

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