I am trying to understand how to apply AMIT cost base adjustments to dividends received from the VANGUARD AUSTRALIAN SHARES HIGH YIELD ETF (VHY).
If I receive the following dividends and associated cost based adjustments from the AMMA statements, how is the adjusted cost base calculated for each dividend received?
Dividends Received (reinvested)
Date: Amount Units Held (after distribution)
17 Jan 2020 $59.71 182
20 April 2020 $44.41 183
16 July 20202 $51.48 184
16 Oct 2020 $49.72 185
From the 2019-20 AMMA statement, AMIT cost base net amount - excess (Reduce cost base) = $3.17
From the 2020-21 AMMA statement, AMIT cost base net amount - shortfall (Increase cost base) = $6.46
So with the cost base adjustments, they are split off per payment that falls in the financial year that it is paid in.
Based on your info, the $3.17 for FY 19/20 would be split across the Jan & April payments (and any that fell in 2019). And the $6.46 would be split between the July and October (and any other 2021 payments).
We’ve created a guide for entering the components manually and the rationale behind it all below:
I thought that all units held (acquired in previous years) were subject to a cost base adjustment if one occurred at the end of the financial year. So for example, any units acquired prior to June 2020 would have their cost base adjusted if an AMIT adjustment amount was stated on the 2019-2020 AMMA statement.
The ATO website states, “Under the new tax system for AMITs, the cost base of your units in the AMIT that are CGT assets can be adjusted both upward and downward (upward adjustments were not previously allowed). Your cost base is adjusted at the end of each income year by the ‘AMIT cost base net amount’.”, and also
“The AMIT will calculate an AMIT cost base net amount for the income year in relation to your units or interests in the AMIT and must state it in your AMMA statement.”
