Tax terms

Attribution managed investment trusts (AMITs)—some Australian exchange-traded funds (ETFs) are considered to be AMITs for tax purposes. If you receive a dividend from an AMIT investment during the financial year, we’ll provide a full tax breakdown (an AMMA statement) in your Sharesies tax statement.

Attribution managed investment trust member annual (AMMA) tax statement—a full breakdown of income received from AMITs during the financial year.

Australian Taxation Office (ATO)—revenue service of Australia.

Capital gains tax (CGT)—tax you pay on profits from selling assets (e.g. shares).

Franking credits—used to reduce (or eliminate) double tax being paid on a dividend.

Inland Revenue Department (IRD)—revenue service of New Zealand.

Internal Revenue Service (IRS)—revenue service of the US.

Medicare levy—an amount paid to the ATO to fund some of the costs of Australia's public health system.

Non-resident withholding tax (NRWT)—the amount of tax paid to the ATO on foreign dividends received.

Taxable income—the amount of money that you pay tax on.

Tax credits—a reduction in the amount of tax you need to pay.

Tax file number (TFN)—a unique number used by the ATO to identify taxpayers.

Tax residency—tax residency is different from your immigration status. You can be a tax resident of more than one country.

Tax treaty—some countries have an agreement or treaty with Australia to avoid double taxation on income.

Total gross dividends—the sum of all dividends received.