Securities Tax Manager (STM)
STM automates the maintenance of your share portfolio and optimises your current tax year’s CGT liability with a minimum of fuss.
Getting Started with STM
There are only 3 things you have to do to get started.
- Set up your client code, name and type of fund e.g Individual, Superannuation, Company, Trust or Trading Account.
- Arrange to receive notice of your trades by email from your brokers.
- Import your HIN/SRN numbers of each security holding in your fund's portfolio from an excel spreadsheet
Once you have set up these 3 things then you need to put your client data into STM. You can do this by either:
Corporate Actions Covered by STM
STM operates with 3 central databases of corporate actions that are applicable to all portfolios.
The 3 databases are:
1. Listed Securities Database
2. Managed Funds Datbase
3. User Maintained
STM Import and Export functionality
STM can import transactions and balances from a large number of sources including:
Using Straight Through Processing, most imports and exports can be scheduled to run at any time. Imports can also be configured to load directly from emails.
Please note that stapled securities are required for tax compliance.
STM - CGT Reports
Securities Tax Manager provides the following reporting:
- Income Reporting
Payments by companies and trusts (including listed and unlisted managed funds)
Detailed component breakdown of payments, such as franked amounts, franking and foreign tax credits, foreign income, interest, distributed capital gains, returns of capital, tax deferred amounts and LIC deductions.
- CGT reports
STM has a full range of realised and unrealised reports including CGT Schedules and Mark-to-Market (revaluation) reports for superannuation funds. Report data can be saved to file and copied and pasted into Excel sheets.
- 45 Day Rule Reports
STM automates parcel picking to LIFO basis to produce 45 day rule reports
- Accounting Reports
Accounting cost reports are calculated on the basis of parcels selected for CGT result
STM - Parcel Selection
STM automatically executes CGT calculations based on your choices for:
Within each of the following methods there is the ability to preserve pre CGT parcels unless absolutely necessary to fulfil a sale.
- Optimisation methods
The default method used matches purchases with sales so that at the time of the sale the highest cost purchase is selected (Minimum Gain-Maximum Loss). This is called optimisation at the time of the sale. Alternatively the lowest cost parcel can be selected (Maximum Gain-Minimum Loss).
The parcel selection can be:
- Time methods
Parcel selection can be made on a time basis of selection such as First-In-First-Out (FIFO) or Last-In-Last-Out (LIFO).
- Average method
Parcel selection can be on an equitable approach such as prorata whereby each sale chooses a portion of each purchase. The portion chosen at the time of the sale is based on the share each purchase has to the total holding of that security at that time.
- Optimal method
The ultimate in optimisation is to review the whole tax year and obtain the Minimum Gain- Maximum Loss pathway through the year. This results from purchase cost adjusting through the year from application of both tax deferred amounts and parcels changing from undiscounted to discounted within the year. This method is currently in pilot testing.
- Own Selection method
You can make your own choices as to what purchase to use for any particular sale or part of a sale.
STM - Use of losses
If any losses occur they can be advantageously used against CGT gains.
The loss net off methods supported are:
- Pick as you go method
The losses can be used optimally against gains once the gain is selected Undiscounted, indexed and discounted gains are used in an algorithm to make the losses go as far as they can to minimise the total CGT liability.
- Loss Optimisation method
A more sophisticated method is to use the losses on the total gains while considering any use of discount gains if undiscount gains are not chosen because they were not lowest gain, thereby making the losses go further in reducing the total realised and unrealised CGT liabilities. This method is currently in pilot testing.
Training and Support
We offer the following training services for STM: