Vanguard® Guide to your AMMA tax statement 2019

Guide to your AMMA tax statement

30 June 2020

About this guide

This guide aims to assist individual taxpayers in completing their tax return for the 2019/20 financial year. It contains basic information of a very general nature about the treatment of your income distributions as shown in your attribution managed investment trust (AMIT) member annual (AMMA) tax statement.

! Note: This guide is not a substitute for tax advice. It has been prepared based on a set of assumptions which may not be applicable to you. If you are in any doubt about your personal tax position we recommend that you seek professional tax advice.

Assumptions

In preparing this guide, we have assumed that:

? you are an individual taxpayer ? you are an Australian resident for income tax purposes ? you use this guide in conjunction with the Australian

Taxation Office's 2020 Individual Tax Return instructions to complete your tax return ? you hold your units for the purposes of investment and that the Australian CGT rules apply to you.

Completing your tax returns

The following information relates to your investment in the Vanguard? Investor Funds. If you had income from any other investments during the year, you will need to combine the information from your other investments with the information provided by Vanguard when completing your tax return. For tax return references refer to the Tax return for individuals (supplementary section) (NAT 2679-06.2020).

Frequently asked questions

What is the attribution managed investment trust (AMIT) regime? AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, you will be assessed on the taxable income that is attributed to you by the fund, regardless of the amount you actually receive.

What are the main differences between annual tax statements and AMMA tax statements? In the past, the annual tax statement provided cash distribution amounts and you were generally taxed based on the amount of cash distribution you received from the fund. The AMMA tax statement provides attribution, cash distribution and cost base adjustment information. The amounts that you will be assessed on and which are required to complete your tax return are based on the attributed amounts. The components required to complete your tax return are shown in Part A of your AMMA tax statement. The components of the cash distributions you received and the components attributed to you are detailed in Part B of your AMMA tax statement.

What does AMIT cost base net amount ? excess represent? Where taxable income attributed to you is less than the cash distribution you received, the difference will decrease both the cost base and the reduced cost base of your units in the fund. The decrease in the cost base of your units in the fund should be taken into account upon disposal of the units when calculating your capital gain/loss position. The reduction of cost base of the units in the fund may give rise to a capital gain if there is insufficient cost base to absorb the reduction.

What does AMIT cost base net amount ? shortfall represent? Where taxable income attributed to you is more than cash distribution you received, the difference will increase the cost base and reduced cost base of your units in the fund. The increase in the cost base of your units in the fund should be taken into account upon disposal of the units when calculating your capital gain/loss position.

What other information can help me with my tax return? Included in the guide pack is the unitholder notice titled `AMMA Tax Statement glossary' which provides you with a high level definition of most components on the AMMA tax statement.

The Australian Taxation Office (ATO) has a helpline for personal tax enquiries, which is 13 28 61. The ATO also has a number of publications which will help you to understand your obligations and complete your return:

? Individual tax return instructions 2020 ? (NAT 71050-06.2020)

? Individual tax return instructions supplement 2020 ? You and your shares 2020 ? (NAT 2632-6.2020) ? Guide to foreign income tax offset rules 2020 ? Personal investors guide to capital gains tax 2020 ?

(NAT 4152)

These publications are available from .au or by calling the ATO on 1300 720 092.

When do I receive a management fee rebate? You will receive a management fee rebate when the management fee applicable to your investment is lower than the management fee that has been charged to the fund. The management fee rebate will be credited to you as a reinvestment in additional units. If you have withdrawn from the fund it will be paid to you.

The amount shown in your AMMA tax statement represents only those management fee rebates that have been credited to you via a reinvestment in additional units.

For total management fee rebates credited to you please refer to the separate management fee rebate statement that has been provided to you upon the management fee rebate being credited.

We recommend you see your tax adviser to determine whether this amount is assessable.

Can I use MyGov? The ATO allows you to prepare and lodge your tax return online using MyGov at .au. The information provided in Part A of your annual taxation statement can be used to complete the worksheet in the Income/ Managed Funds section of MyGov.

You should carefully read the instructions, as there are circumstances when the Managed Fund section should not be used.

What if I'm not an individual taxpayer? The information provided in this guide assumes you are an Australian resident individual taxpayer. If your investments in the Vanguard funds are made through a trust, company or superannuation fund, you may need assistance from your accountant or tax adviser in the completion of your tax return.

Australian income

The Australian sourced income shown in Part A of your AMMA tax statement relates to the tax return form as follows:

Share of net income from trusts, less net capital gains, foreign income and franked distributions at label 13U, other deductions relating to non-primary production income at label 13Y, franked distributions from trusts at

label 13C, share of franking credits from franked dividends at label 13Q, share of credit for TFN amounts withheld at label 13R, share of credit for tax paid by trustee at label 13S and management fee rebate at label 24V.

There are circumstances in which your ability to claim a franking credit may be reduced. For further details please refer to the ATO publication You and your shares 2020 (NAT 2632-6.2020).

Example 1: Australian Income

Part A ? Summary of 2020 Individual Tax Return (supplementary section) items. The following tax return items are valid for Australian Resident Individual Unitholders only.

Non-primary production income

2019 Tax return for individuals

(supplementary sectioAnm)ount

Tax Return Label

1 July 2018 to 30 June 201$99,782,165.31

13U

Other deductioUwnsitehsIanrdbeilvalicdakutaoilrntbagxlureetbtouarlnldpioniissntttruprceitbnioounnstlysi.uoDpnpolsenmoteunste20co19rretoctfiiollninfluthidisotraxtarpeetu. rPnr.inPtleoanseeleptrtienrt onre$na0utlmy.0ibne0Br LinOeCaKchLEboTxT.ERS

Print X in appropriate boxes. Complete your details carefully to avoid delays in processing your tax return.

Franked distributions

$2,571,555.11

13Y 13C

Franking creditsYour tax file number (TFN)

Credit for TFN aYmouronuanmtes withheld Credits for tax pPrainit dyoubr fyull ntarmues. tee

Management fee rebates

Title ? for example, Mr, Mrs, Ms, Miss

Surname or family name

Given names

See the Privacy note in the

$1,200,596Ta.x4p7ayer's declaration on page 10 of your Tax return for individuals 2019. $0.00 $0.00 $0.00

13Q 13R 13S 24V

Income

13 Partnerships and trusts Include any deferred non-commercial business losses from a prior year at X or Y

as appropriate and insert the relevant code in the TYPE box.

Primary production

Distribution from partnerships N

,

.00

Share of net income from trusts L

,

.00

Landcare operations and deduction for decline in value of water facility, fencing asset

I

and fodder storage asset

Other deductions relating to amounts shown at N and L

X

Non-primary production

,

.00

TYPE

,

.00

Net primary production amount

LOSS

,

,

.00

Distribution from partnerships, less foreign income

O

Share of net income from trusts, less capital gains, foreign income and franked distributions

U

,

.00

Show amounts of:

,

.00

n capital gains from trusts at item 18 and n foreign income at item 19 or 20.

Franked distributions from trusts

C

,

.00

Landcare operations expenses J

Other deductions relating to amounts shown at O , U and C

Y

,

.00

TYPE

,

.00

Net non-primary production amount

Partnership share of net small business income less deductions attributable to that share

D

,

.00

LOSS

,

,

.00

Trust share of net small business income less deductions attributable to that share

E

,

.00

Share of credits from income and tax offsets

Share of credit for tax withheld where Australian business number not quoted

P

. ,

26790619

21 Rent

Share of franking credit

from frankGerdosdsivriednetndPs

Q

Share

of

credit for tax file number amounts

withheld frIonmterienstet rdeesdt,udcitvioidnesndQs

R

and unit trust distributions

Credit forCTaFpNitaalmwoourknstsdweidthuhcetilodnfsromF

payments from closely held trusts

M

Share of crOedthitefrorretnatxalpdaeiddubcytitornussteUe S

,,

.00.

,,

.00.

,,

.00.

,,

.00.

Net rent

P less (Q + F + U)

LOSS

,

,

.00

22 BonSuhsareesoffcroremdaitmflooifruenfotisrne(isegxnucrrleuasdniidncegnectacwpoiitthamhl ogpladaiinnnsg)ieAs and friend, ly societ.ies

23 Forestry managaeffodrdianSbvhileaityrsestocmfhNeemanteitotnsaaxcl hroefefnstmeatl eBincome ,

.

W

Show amounts of: n credit ,for foreign

res, ident

.00

capital gains

A

withholding ,

from

trusts ,

at

item

1.80. 0

N2A4T 26O79-t0h6e.2r01i9ncome

Category 1 Sensitive (when completed) Y

,

Type of income

Category 2 (ATO interest)

Category 3 (FHSS)

X

,

R

,

Category 4

V

,

Tax withheld ? lump sum payments in arrears

E

Taxable professional income Z

Tax withheld ? assessable FHSS released amount S

,

.00

,

.00

,

.00

,

Pa.0ge013

,

.00

,

.00

,

.00

TOTAL SUPPLEMENT INCOME OR LOSS

LOSS

For the amounts in the right-hand column at items 13 to 24 add up all the income

$

,

,

.00

amounts and deduct any loss amounts.

Foreign income

The foreign sourced income shown in Part A of your

AMMA tax statement relates to the tax return form as

follows: assess1a4blPeefrosroenigalnsseorvuicrcees iinnccoommee(PaSt Il)abel 20E,

Australian frankingTocrceomdpitlestefrthoismiteam,NyoeuwneZedetaolarenaddacnod mcompaplnetye the Business and professional items schedule for individuals 2019. at label 20F, otherYonuectanfonorteloigdngesaopuaprcerereitnurcno. Ymouemautstlalobdgeelyour tax return using myTax or a registered tax agent.

20M, foreign in1c5omNeettianxcoomffeseotrsloastslafrboeml b2u0sOin.ess

To complete this item, you need to read and complete the Business and professional items schedule for individuals 2019.

There are circumstYaonu ccaensnoitnlowdghe iachpapyeorurertuarnb.ilYiotyu mtousct lloadigme your tax return using myTax or a registered tax agent.

a foreign incom1e6 tDaxefoefrfrseedtnmona-ycobme mreedrcuicael dbu. sFionresfusrltohsesres details please refeTrotcoomthpeleteAtThOis itpemu,byloicuanteieodntoGreuaiddaendtocomplete the Business and professional items schedule for individuals 2019.

You cannot lodge a paper return. You must lodge your tax return using myTax or a registered tax agent.

foreign income tax offset rules 2020.

17 Net farm management deposits or repayments

Deductible deposits D

,

.00

Early repayments ? natural disaster and drought

N

,

.00

Example

2:

Foreign

Other repayments

Income

R

,

.00

LOSS

Net farm management deposits or repayments

E

,

,

.00

Part A ? are valid

S1f8ourmCAmaupsaitrtrayalloigafan2inT0sa2x0DRIidtneaxydsoeiiudvvehiendatnvudetauarIlinncTagdaptiihxtvaeliRdygeaeuainrta?sul rGUnn(siNtuohpopldleemrsYeeosnntlayr.yCaYOmoDsuEoemucnuttsoitofpcnrain)ptiittXael gimnaitnhsse.fYrToehmsebaotfxrouasltlt.oGwifinyogu

htaadxanreturn

items

Have you applied an exemption or rollover?

M

No

Yes

Net capital gainAmA ount ,

, Tax .R0e0turn Label

Assessable foreign souTortcalecuirnrecnot ymearecapital gains H

,

.00$220,981.31

20E

Australian franking credfoirtwsNarefdtrctooamplaittaelarloinNscsoeemswecayrZeraieerdsalVand comp,any

.00

$0.00

20F

Other

net foreignCsreoduit frocr eforienigcnoremsident capital gains

withholding amounts

X

Foreign income tax offsets

19 Foreign entities

. $220,981.31

,

$31,615.00

20M 20O

Did you have either a direct or indirect interest in a controlled foreign company (CFC)?

I

No

Yes

CFC income K

,

,

.00

Have

you the

ever, either directly transfer of property

or indirectly, caused ? including money ?

W

No

Yes

Transferor trust income

B

,

,

.00

or services to a non-resident trust estate?

20 Foreign source income and foreign assets or property

Assessable foreign source income E ,

,

.00

LOSS

Other net foreign employment income T

,

,

.00

LOSS

Net foreign pension or annuity income WITHOUT an undeducted purchase price

L

,

,

.00

LOSS

Net foreign pension or annuity income WITH an undeducted purchase price

D

,

,

.00

LOSS

Net foreign rent R

,

,

.00

LOSS

Also include at F Australian franking credits from a

Other net foreign source income M

,

,

.00

New Zealand franking company that you have received indirectly through a partnership or trust.

Australian franking credits from a New Zealand franking company

F

,

,

.00

Net foreign employment income ? payment summary

U

,

Exempt foreign employment income N

, ,

LOSS

.00

.00

Foreign income tax offset O

. ,

During the year did you own, or have

an interest in, assets located outside Australia P No

Yes

which had a total value of AUD$50,000 or more?

Page 14

Sensitive (when completed)

TAX RETURN FOR INDIVIDUALS (supplementary section) 2019

Capital gains

The capital gains shown in Part A of your AMMA tax statement relate to the tax return form as follows: total current year capital gains at label 18H and net capital gain at label 18A.

Did you dispose of any units during the year?

If you disposed of units during the year, please be advised you will no longer receive a CGT statement and CGT guide. You can still calculate your current year's capital gain or loss position resulting from the disposal of your Vanguard units by using information provided in your transactional history statement and information contained in the AMMA tax statement. You will need to combine any capital gain or loss you make from your disposal of any units during the year, with the capital gain information from your AMMA tax statement in completing Question 18 of your tax return.

Example 3: Capital Gains 14 Personal services income (PSI) To complete this item, you need to read and complete the Business and professional items schedule for individuals 2019. You cannot lodge a paper return. You must lodge your tax return using myTax or a registered tax agent.

Part15A -NSeutminmcaormy eofo2r 0lo2s0sInfrdoimvidbuuasl TinaexsRseturn (supplementary section) items. The following tax return items are valid forToAcuosmtrpalelitaenthRiseitseimd,eynotuInnedeidvitdoureaaldUanndithcoomldpelertse othnelyB.usiness and professional items schedule for individuals 2019.

You cannot lodge a paper return. You must lodge your tax return using myTax or a registered tax agent.

16 Deferred non-commercial business losses

Amount

Tax Return Label

Total cTuorcroemnptleyteathrisciatepmit,aylouganeineds to read and complete the Business and pro$fe4ss,3io4n7a,l 8ite8m1.s6s4chedule for individuals 2019.

You cannot lodge a paper return. You must lodge your tax return using myTax or a registered tax agent.

Net capital gain

$2,173,940.82

18H 18A

17 Net farm management deposits or repayments

Deductible deposits D

,

.00

Early repayments ? natural disaster and drought

N

,

.00

Other repayments R

,

.00

LOSS

Net farm management deposits or repayments

E

,

,

.00

18 Capital gains

Did you have a capital gains tax event during the year?

G

No

Have you applied an exemption or rollover?

M

No

Total current year capital gains H

Net capital losses carried forward to later income years

V

Credit for foreign resident capital gains withholding amounts

X

Yes Yes

, , ,

You must print X in the Yes box at G if you had an amount of capital gains from a trust.

CODE

Net capital gain A

,

,

.00

.00

.00

.

19 Foreign entities

Did you have either a direct or indirect interest in a controlled foreign company (CFC)?

I

No

Yes

CFC income K

,

,

.00

More

informHaatvieoyntohuoeretrsvaeenrrvs,ifceeeritsohtfeorpradoirnpeoecnrttl-yyre?osriindincedlnuitrdeticrnutglsyt,mecosantuaeCstyeeod??nWtactNiong

the

Yes

ATO

Transferor trust income

B

,

,

.00

Internet: .au/taxation

Internet:.au

20 Foreign source income and foreigTnelaespsheotnseo:r ApTroOpe1r3ty28 61 or ATO publications 1300 720 092

Assessable foreign source income E ,

,

.00

LOSS

Other net foreign employment income T

,

,

.00

LOSS

Connect with VanguardTM > vanguard.Nceot mfore.aigun pensioannour nadnenduuitcytiendcopmurechWaIsTeHpOrUicTe L

,

,

.00

LOSS

Net foreign pension or annuity income WITH an undeducted purchase price

D

,

,

.00

LOSS

Net foreign rent R

,

,

.00

LOSS

Also include at F Australian franking credits from a

Other net foreign source income M

,

,

.00

Vanguard

New Zealand franking company that you have received

InveisntdmirencttslyAthusrotruagliha aLtpda(ArtnBeNrs7h2ip07o2r t8r8u1st0. 86 /AFS Licence

Australian franking credits from

2272a63N)eiswthZe aplraondducfrtainsskuinegr. cWoemhpaavney

noFt

taken

you,r

circumstanc,es

into

accou.n0t 0when

preparing

this

publication so it may not be applicable to your circumstances. You should consider your circumstances and ourLPOrSoSduct Disclosure Statements (PDSs) before making any investment

decision. You are based on

ccaunrreanctcelasws souarnPdNDtSehtsefiaortrienwitgewnrwper.emvtaappntlgaioouyynammradeet.nnc3tto0msinuJ.camuounmmeoear2rb?y0y20Uc.alTlihnigs

,1p3u0b0lic6a5ti5on10w1,a. sPapsrteppaerrefodrm.in0ang0coeodisfaniotth

an indication of and we accept

future performance. Taxation considerations no liability for any errors or omissions. The

extracts of the Australian TaExaxteiomnpOt ffoicrei'gsnInedmivipdluoaylminecnotminecotamxeretNurn (supplement,ary section) i.n0cl0uded in this publication is copyright of the Commonwealth of Australia and

is reproduced by permission. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from

the Commonwealth Copyright. AdministFraotrioenig,nAitntocronmeye-Gtaexneorfafsl'estDeOpartment. Requ,ests and inqu.iries concerning reproduction and rights should be directed to Commonwealth

Copyright Administration, CoDpuyrriingghttLhaewyeBarar ndcidh,yAotutoornweny,-Goernhearvael's Department, Robert Garran Offices, National Circuit, BARTON ACT 2600.

? 2020 Vanguard IannveinstemrenstsinA,uasstrsaeltias Llotdc.ated outside Australia P No

Yes

GTAX_062020 which had a total value of AUD$50,000 or more?

Page 14

Sensitive (when completed)

TAX RETURN FOR INDIVIDUALS (supplementary section) 2019

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