Forms of Income from Share Investments

Form of income or return

Impact on assessment

Obligation to notify DVA

Dividends

None

None

Capital gains and losses

Capital:

• Gains are not assessed as income.
• Losses cannot be offset against other assessable income

None

Share Restructures (i.e. share splits and consolidations or bonus shares)

Not assessed as income but they do increase or reduce the number of shares held, and this affects both the assets test and deemed income.

None

(DVA automatically monitors and updates share restructures each fortnight).

Dividend reinvestment schemes

Only the additional shares purchased will affect the income and assets tests.

Pensioner must notify upon purchase of additional shares.    

Return of capital

Any return of capital in the form of a cash payment is not assessed, however if that payment is invested as a financial asset, it will have an impact on the income and assets test.

Pensioner must notify if payment is reinvested as a financial asset    

Company employee share plans or schemes

Shares from company employee plans or schemes are not subject to deeming until the shareholder becomes the legal owner by paying for the shares in full.

Pensioner must notify once shares are paid for in full