Tax optimisation made easy

Expand’s tax optimisation tools can help you optimise the capital gains tax (CGT) outcome for your clients and estimate the impact of a trade before it is submitted:

• Tax optimisation method allows you to set the order in which parcels are selected for disposal to align the CGT impact of a transaction with the client’s goals.
• On-screen estimation supports you in providing an estimate of the capital gain impacts in a statement of advice (SOA).

Tax optimisation methods

Choose from three tax optimisations methods to help you manage your client’s CGT outcomes:

• First in first out: Parcel(s) with the oldest cost date will be selected for disposal first. This is the default setting on your client’s account when no tax optimisation method has been selected.
• Minimise gain / maximise loss: Parcel(s) with the lowest estimated assessable capital gains* will be disposed of first.
• Maximise gain / minimise loss:6 Parcel(s) with the highest estimated assessable capital gains* will be disposed of first.

*Lowest / highest gains are calculated after applying CGT discount rates (for parcels held for more than 12 months).

How to access the tax optimisation methods?

The tax optimisation methods can be accessed via the Account details tab or when loading a trade from the Investments tab.

On-screen estimation

Our on-screen estimate of the assessable net gain/loss of a trade allows you to see the impact of a trade before it is submitted.

The estimate is calculated in real time based on the:

• parcels selected using the account’s tax optimisation settings
• current price, and
• number of units/ dollars entered in the trade.

This estimate also includes a CGT discount where the account type is eligible and the parcel selected has been held for over 12 months. The estimate is calculated using current balances at the time of trade, it does not consider any pending transactions, off platform assets or gains/ losses from other transactions.

Useful tips on Expand’s tax optimisation tools

Tax optimisation method

• A tax optimisation method is at the account level and once set will be used for future transactions. Transactions that have already been submitted will not be updated to the new tax optimisation method.
• If no selection is made the default setting on all accounts is First in first out.
• The tax optimisation method can only be edited by a user with trade authorisation.

On-screen estimation

• If you need to change the tax optimisation method after viewing the estimate, you can do this without cancelling the trade. Simply click ‘Add’, then from the Review and submit panel the tax optimisation method can be edited. The on-screen estimation will automatically recalculate if the method is changed.