Distribution of Income

Your income from the ExtrasJar Fund.

Reece Frazier avatar
Written by Reece Frazier
Updated over a week ago

Investing in the ExtrasJar Managed Investment Scheme (or the Fund) means you are eligible for income distribution. This income furthers your savings and allows you to have more funds to use when you need it most for health or pet care treatments.

The ExtrasJar Health Extras Account and Pet Extras Account invest in the “Extras” class of Units in the Fund.

Distributions are paid to Unitholders by issuing additional Units in the Fund. The reinvestment Unit price will be based on the net asset value (NAV) of the Fund (after deducting the value of the distributions being paid) as at the close of business at the end of the distribution period.

We generally calculate distributions annually on or around 30 June each year and pay distributions within ninety (90) days of that date. We may pay distributions more or less frequently.

To be eligible for income distribution, you must be a Unitholder on the distribution calculation date. Distributions are not prorated for current Unitholders not yet classified as such for that whole period. Those who were not yet eligible for a distribution from the past calculation date will be entitled to the next period.

Taxing your Distribution

The income of the Fund attributed to you must be included in your income tax return for the year of entitlement, even if the distribution is received or reinvested in the following year.

Where a distribution made to you is less than or more than the trust components attributed to you, the cost base of your Units will need to be increased or decreased as appropriate. Should the cost base be reduced to zero, a distribution amount in excess of the zero cost base will be a gain to be included in your taxable income.

A trust that qualifies as a managed investment trust (MIT) can elect to treat its gains and losses on the disposal of certain investments as capital gains and losses. The Fund is expected to make this election, where eligible.

A capital gain derived by the Fund may be eligible for the 50% CGT discount where the investment has been held for at least 12 months (excluding the acquisition and disposal dates). Any assessable capital gains derived by the Fund to which you become entitled forms part of your assessable income.

When you become entitled to a discounted capital gain from the Fund, you will be required to gross up the capital gain for the discount at the time that you are required to include that gain in their assessable income. You may also be eligible for the 50% CGT discount (where you are an individual or trust) or a 33 1/3% CGT discount (where you are a complying superannuation fund) in respect of the gain that forms part of your assessable income.

Details of the trust components attributed to you and any net cost base adjustment will be included on your annual tax statement.

Where the Fund’s determined trust components for an income year are revised in a subsequent year (e.g., due to actual amounts differing to the estimates of income, gains/losses or expenses), then differences (referred to as 'unders and overs’) will arise. Unders and overs will generally be taken into account in the annual tax statements in the year they are discovered.

In the case where a Fund makes a loss for tax purposes, the Fund cannot distribute the loss to investors. However, subject to the Fund meeting certain conditions, it may be able to take into account the losses in subsequent years.

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