Tax elections

Online tax elections let you customise each of your clients' Wrap Tax Reports to suit their individual needs. 

You have options for managing: 

1. Cost base for capital gains tax – FIFO (default), minimum gain or specific parcel selection, and 
2. Tax treatment of adviser fees – Unallocated (default), deductible or non-deductible.

You can’t make a tax election for adviser establishment fees, which are treated as non-deductible.

Please note that tax elections are only open from mid-May through to early July. We’ll be in touch when tax elections are open to ensure you don’t miss out.

Tax elections are carried forward from the previous year and automatically updated. If your adviser code has changed, any elections made under a previous adviser code won’t carry across to the new one and our default elections will apply.

You can select one of three Capital Gains Tax (CGT) / cost base options that will apply to disposals in the current financial year:

• FIFO (default) – Disposals will be allocated to the earliest open parcel (first in first out)
• Minimum gain – Disposals will be allocated against the open parcel that will generate the largest capital loss or lowest gain
• Specific parcel selection – You specify the open parcels against which disposals can be allocated.

To check your client’s current status:

1. Log in to Adviser Online
2. Select Reporting from the menu under the Macquarie icon and select Client and Adviser Reporting
3. Select Run a report across all my clients’ accounts
4. Click Generate adviser reports
5. Select Tax Status from the dropdown menu and choose to either view in browser (screen) or download a PDF (PDF). Select Continue
6. Select the tax year. By default, the most recent year is selected. Click Generate.

Your tax election is recorded under the Default Cost Base Method heading.

To make a change to your client’s CGT cost base election:

1. Log in to Adviser Online
2. Select Clients from the menu under the Macquarie icon and select Wrap account administration
3. Click Maintain an investment account
4. Select Enter or maintain CGT cost base method
5. Select Make a specific parcel selection.

Please note that any changes made to cost base elections will apply to disposals in the current financial year.

One of the tax election options is specific parcel selection, where you specify the open parcels against which disposals can be allocated. 

Please note that this may not be an option across all listed securities due to a corporate action event. 

If you’d like to choose specific parcel selection and the security you wish to select isn’t displayed, this will be available if: 

• There’s a sale for a partial holding in the current tax year, and
• Multiple buy parcels are available for selection (you can find this in the Unrealised Gains report).

If you’re a Macquarie Wrap adviser, you also have the option to select one of three tax elections for your client’s adviser fees. These are for adviser transactions fees and Adviser ongoing fees. 

• Unallocated (default) – adviser fees will be unallocated in your clients’ tax reports
• Deductible – adviser fees will appear as deductible in your clients’ tax reports
• Non-deductible – adviser fees will appear as non-deductible in your clients’ tax reports.

On Adviser Online you can modify your adviser fee tax elections, choose how your clients will receive their report and if your fees are deductable. This election applies to all accounts under this adviser code.

To do this:

1. Log in to Adviser Online
2. Select Clients from the menu under the Macquarie icon and select Wrap account administration
3. Click Change adviser tax election
4. Select the Adviser code and tax year and click View or maintain adviser level tax election
5. Select Modify.