InvestSMART
Investing with Us

Taxation

Yes. All investing will have tax consequences and you should seek professional tax advice for the full implications of your chosen investment. Through the onboarding process and initial set-up of your investment, you will have the opportunity to provide your Tax File Number so that you can be taxed at the correct rate.

The Foreign Account Tax Compliance Act (FATCA) was introduced by the United States Government as a means of obtaining more tax information with regard to US tax citizens and US-owned entities. InvestSMART is deemed to be a “foreign financial institution” and as such is required to obtain and disclose information from these individuals and entities. This information is reported to the Australian Tax Office (ATO) by InvestSMART, which in turn is forwarded to the U.S. Internal Revenue Service (IRS). If you are a citizen of The United States or wish to invest with us through a US-owned entity, you are required to disclose this information during the application process.

The Common Reporting Standard or 'CRS' originated from a G20 request which was subsequently approved by The Organisation for Economic Cooperation and Development (OECD) Council in 2014. The main principle requires the automatic exchange of non-resident taxpayer information between different countries annually. 

If you have indicated that you are a tax resident of another country, we will make further enquiries around your tax residency. This will include obtaining information such as your Taxpayer Identification Number. This information will be forwarded to The Australian Taxation Office (ATO) as part of their obligations in upholding the CRS.

 

 

Absolutely. InvestSMART Group adheres to the Privacy Policy Act and will only forward tax-related information when required. All information is securely stored.
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Under our Professionally Managed Accounts, you will gain the following benefits:
1. Professionally managed investment portfolio: An investment portfolio managed by InvestSMART's investment team.
2. You own the securities: The investor holds legal ownership and the underlying securities are registered under your name.
3. Reporting: Complete end of year Accounting and tax reporting is provided on your investment. 
4. Transparency: Investors are provided full visibility of all stocks held in your portfolio.
5. Tailored & Unique Portfolio: Under a PMA, we offer multiple model portfolios to choose from so that you can create a customised and diversified portfolio to suit your individual needs. Our model portfolios will differ in the levels of risk and return, and each model offers a different investment emphasis (such as Australian & international equities, property securities, international ETFs, etc).
6. Account Management: The paperwork and administration is taken care of, reducing the administrative burden on investors.
7. Tax effective: You only pay tax on gains & income you received.
8. Inflows & outflows: Your investment will not be impacted by the decisions of other model portfolio investors. An example of this is when a pooled investment like a managed fund receives redemption requests at the bottom of the market and is a forced seller at the worst time.
9. Flexibility with income/distributions: Choose to receive the dividends directly into an account of your choice or set up a regular payment or request drawdowns on an adhoc basis.

Once the funds have cleared in the InvestSMART Applications Account they will be transferred over night into your investment account. Once settled in the investment account our team will buy the holdings in the model/s you have selected. 

Yes you can. You are able to set up a regular contribution plan or add funds at any point for your InvestSMART PMA.

When setting up your account you can elect to have a monthly direct debit from your bank account into your InvestSMART PMA. The minimum monthly direct debit amount is $100.

If you are already invested click on Investment Preferences to set up or amend the regular contribution plan in the Quick Links section or the My Account section when you are logged in.

To add funds whenever you wish click on the Add Funds link in the Quick Links section or in My Account.

Yes, you can easily switch between investment models and yes you can hold more than one investment model in the same account.

To switch between investment models simply click on Modify Allocations via the Quick Links section or within My Account. There are no administration fees for changing between models. The only costs associated would be the brokerage charges for selling and buying the new holdings. 

You can hold as many investment models in the same account as you like. If the model is part of our capped fee range the management fee will apply to your account as a whole. For example if you hold the InvestSMART Balanced Portfolio and the InvestSMART International Portfolio you will only pay a maximum of $451pa on your portfolio and not $451 per model.

 

Yes. Investors have legal ownership of the shares and they are held on a HIN (holder identification number) registered with CHESS in the investors name.

Should you wish to withdraw your investment with InvestSMART you can transfer your shares out to a brokerage account of your choice.