The following table describes the consequences of the deeming of income from share investments. The basic principle is that actual returns from shares in any form in the following table are not assessed as income because deemed income is assessed from the types of share investments listed in:
- Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings, and
- Deemed Income from Unlisted Public Securities, Delisted & Suspended Shares.
More →More → (go back)
Various 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:
|
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. More →
Recipient obligations |
|
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 More →
Recipient obligations |
|
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 More →
Recipient obligations |