This article contains information designed to assist you with your end of financial year tax information processing and reporting.
It includes a list of the most frequently asked questions received by our support staff, and links to a short summary reference guide and a full instruction guide designed to assist system administrators work through the various stages of end of year processing.
2018 Tax Summary Guide
This guide provides a reference for the Tax Summary report to the ATO tax return labels for individuals, trusts, self-managed super funds and companies.
Please note, it provides general information only and is not intended to represent taxation, investment or professional advice. Clients who want CGT losses from prior years included on the Tax Summary report will need to manually record those losses in the portfolio.
Click to open the 2018 Tax Summary Guide.pdf
Financial Year End 2018 user guide
This document contains a full description of end of financial year processing for administrators of non-SMA portfolios. It includes procedures for locking the overnight recalculation date, locking the tax year and manually updating end of year tax information. The document also includes information on Praemium's automatic tax information updates and asset valuations.
Click to open the Financial Year End 2018.pdf
Frequently Asked Questions
What does Praemium do for year-end?
Praemium assist with year-end tax reporting requirements by updating the tax component information for trust distributions received during the financial year. These tax components are updated based on the annual tax information made available by the trust or fund manager.
For listed trusts (including AMIT trusts), the tax updates are normally completed by the end of September, while managed funds continue to be updated until the end of November.
What if I DO NOT want to use Praemium’s tax updates?
If your service does not wish to use Praemium’s updates for listed and/or managed funds, then complete the following steps before 30 June 2018:
- From System Management, click Service Maintenance.
- Under Year-end tax information for distributions, select the appropriate box.
Please ensure boxes are only ticked when you DO NOT wish to follow Praemium’s year-end updates.
Regardless of the settings above, Service administrators can edit tax components for trust distributions using the Year end distributions screen available from the Income details screen.
When will prices be updated for ASX listed stocks for 30 June?
Prices will be updated in the normal way, overnight on Friday 29 June 2018. These prices will be the prices reported for 30 June 2018
During the year-end update process, should I lock my recalculation date to 30/06/2018?
Rather than your portfolios rolling forward to the current date every evening, you may wish to lock the roll forward date for all your portfolios to 30/6/2018. By doing so, you will be able to view year-end updates without having to recalculate portfolios back to 30 June. This can be set up and managed by a Level 12 user as follows:
- From System Management, click Service Maintenance.
- In the Lock overnight recalculation date to box, type 30/06/2018.
When will prices be updated for managed funds and unlisted trusts for 30 June?
For funds, where pricing and distribution information is managed by Praemium, valuation prices as at 30/06/2018 will be updated as soon as the information becomes available from the fund manager.
For unlisted unit trust holdings which are not managed by Praemium, the final price can be entered at any time using the Prices function on the Asset Maintenance > Service Assets screen.
I want to issue end of year reports to my clients in the first week of July even though the tax updates have not been completed?
You may wish to issue interim 30 June 2018 reports to your clients. You can then re-issue tax reports once all the tax component updates to distributions have been completed.
There is an example of how to issue interim reports in our help topic on Example scenarios on using working portfolio lists in Report builder.
How does Praemium update the tax component information?
During the year, all income from listed trusts and managed funds is generally allocated to unfranked income and to one ‘child’ security of a stapled security. When the tax components for these become available, the unfranked amounts are reallocated to the appropriate tax components and appropriate child stapled securities on a cents per unit basis. This is done at a global level and applied across all portfolios. These updates will appear in the portfolio once it has been recalculated or after an overnight roll forward.
Will the tax component updates be correct if I have not held the trust security for the full financial year and not received all applicable distributions?
If the holding was not held for the full financial year and you did not receive all applicable distributions, in some cases it may be necessary for you to make the adjustments for individual investments. Adjustments to the tax components may also be required when the holding includes dividend reinvestments and management rebates.
What are the red and green confirm buttons?
When a distribution is allocated to a portfolio during the year, the red confirm button will normally appear.
When a trust distribution has had the tax components updated as part of the year-end process, the green confirm button will appear. Further examples are provided in the Financial Year End 2018 document.
Please note: if the red button has not been confirmed, then the green button will not display. The red button will remain displayed.
When will Praemium finalise listed trusts updates?
We expect to have ASX listed trusts updated around the end of September 2018.
When will Praemium finalise the managed funds updates?
We will continue to update the tax components of managed funds until end of November 2018.
Note: Not all managed funds are updated as we rely on this information being made available to us from the fund managers. Please contact our support team if you have a query on a particular managed fund.
Can I receive an update when listed trusts and managed funds have been updated?
Yes, Praemium will provide System Administrators with a system message every Friday (via an Excel spreadsheet) advising which listed trusts and managed funds have been updated for the week.
Can I check whether my portfolios have had their year-end tax components updated?
Yes, you can use the Trust column on the Maintenance > Assets screen to sort the assets held by your clients. Then you can use the Date FY18 finalised column to sort those which have been updated from those that have not.
There are also filters available in the Report Builder section in order for you to check whether tax information has been updated. As a starting point, you will need to:
- Select your annual tax report layout
- Enter 30 June 2018 as your period ending date, and
- Select the appropriate filter.
Will Praemium inform me when all ASX listed trust components have been finalised for the financial year?
Yes, Praemium will post a system message, normally around the end of September, informing all users that the ASX listed trust components have been updated.
What should I do once the year-end update process has been completed?
We recommend that all System Administrators lock the updated tax information for each portfolio to avoid the risk of editing the information any further.
- From Maintenance > Portfolio Management, click Lock Tax Year.
- Click Lock Tax Year Ended 30/06/2018
Please note: the tax year should only be locked once all information is complete, reconciled and finalised. Also, please note that to lock a portfolio as at 30/06/2018, the portfolio must be calculated to a date beyond 30/06/2018.
Can I reverse a locked tax year status to make a prior year adjustment?
Yes. Once the portfolio has been locked to 30/06/2017, from Maintenance > Portfolio Management, click Unlock tax year ended 30/06/2018.
We welcome your feedback. You can contact a client services representative on 1800 571 881 or email us if you have specific questions about end of year processing.