Managed Funds over $500,000
Performance after tax
Total Returns
Total returns are calculated after management and transaction costs. Returns assume all income distributions are reinvested and do not take into account of any management cost rebates. Total returns (after tax) are calculated on four different tax brackets:
A superannuation fund which is taxed at 15%
Individual in the mid tax bracket who is taxed at 31.5%
Individual in the top tax bracket who is taxed at 46.5% (48.5% prior to 1 July '06)
Individual in zero tax bracket with imputation credits claimed
These after tax returns should be seen as a guide only as there have been a number of assumptions made in calculating these returns.
After tax assumptions
Taxation is an extremely complex component of law and as such, providing performance returns after tax has led to many assumptions being made. The calculations should be seen only as a guide as personal tax liabilities can be offset by numerous concessions which Vanguard has not taken into account. To make the after tax table as easy to understand as possible, Vanguard has made the following assumptions:
1. Investors are Australian resident taxpayers.
2. Investors hold their units on capital account.
3. Discounted capital gains method applied for periods post 30 September 1999. Capital gains fully taxed pre 30 September 1999 (with no indexation of the cost base).
4. All tax credits can be fully utilised (foreign tax credits not applicable to tax exempt individuals).
5. Returns assume reinvestment of net of tax distributions on the distribution period end date i.e. after allowing for tax.
6. Buy/sell spread ignored on initial purchase of units and on full redemption of units.
7. Returns calculated using applicable income tax rates at the time of each distribution.
8. Capital gains concessions are always available to the investor.
9. Investors will be able to immediately offset any loss made on their units against capital gains from other sources.
Past performance is not an indicator of future performance.
