EOFY ETF Investing Guide 2026: Tax Tips

30 June is the end of the Australian financial year. For ETF investors, a handful of things are worth understanding before then. This guide covers the key ones: distributions, franking credits, the CGT discount and tax-loss harvesting.

General information only. Not financial advice. Always consult a registered tax agent for advice specific to your situation.

ETF distributions and the June quarter

Most Australian ETFs pay distributions quarterly, with the June quarter being one of the larger ones for many funds. The distribution cycle works like this:

• Ex-dividend date: the date from which new buyers are no longer entitled to the upcoming distribution. If you buy on or after this date, you do not receive the distribution.
• Record date: the date the fund determines who holds units and is entitled to the distribution. Usually one or two business days after the ex-dividend date.
• Payment date: when the distribution is actually paid into your account. For the June quarter this is typically in early July.

One thing worth understanding: when an ETF pays a distribution, the unit price generally falls by roughly the distribution amount on the ex-dividend date. This is not a loss. The value has moved from the unit price into the cash distribution. Total value before and after is approximately the same.

Check the fund manager's website or your broker for the exact dates for each ETF you hold. Dates vary by fund and are not always consistent year to year.

Franking credits and Australian shares ETFs

Australian shares ETFs such as VAS, A200 and VHY typically distribute franking credits alongside their cash distributions. Franking credits represent tax already paid at the corporate level by the underlying Australian companies. They can reduce the tax payable on distributions in your annual return, or in some cases generate a tax refund.

The franking rate varies by ETF and by financial year, depending on the mix of companies in the fund and their individual franking levels. The fund manager publishes a distribution statement after 30 June each year showing the exact franking amounts.

Global shares ETFs such as VGS and BGBL generally carry little or no franking credits, because the underlying companies are not Australian taxpayers.

A registered tax agent can explain how franking credits apply to your individual tax position.

The 12-month CGT discount

Under Australian tax law, individuals who hold an asset for more than 12 months before selling may be eligible for a 50% discount on any capital gain. This means only half the gain is included in assessable income for that financial year.

For ETF investors, the practical implication is that the date of purchase and the date of any sale both matter when it comes to whether the discount applies. The holding period is calculated from the date of purchase to the date of sale.

The timing of a sale relative to 30 June also determines which financial year the gain falls into. A gain realised before 30 June is assessable in the current financial year. A gain realised on or after 1 July falls into the next financial year.

Whether this timing matters in any given situation depends on individual circumstances, including income, other gains and losses, and marginal tax rate. A registered tax agent can work through the numbers for your specific situation.

Tax-loss harvesting

Tax-loss harvesting is the practice of selling a position at a capital loss before 30 June in order to offset capital gains realised during the same financial year. Capital losses can be used to reduce the net capital gain that is included in assessable income.

A few things are worth knowing about how this works with ETFs in Australia:

• Capital losses can only be offset against capital gains, not against ordinary income such as salary or distributions.
• If capital losses exceed capital gains in a financial year, the excess losses are carried forward to future years. They do not expire.
• The ATO may scrutinise transactions that appear to have no genuine commercial purpose beyond generating a tax deduction. A registered tax agent can advise on your specific circumstances.

Whether tax-loss harvesting makes sense in a given situation depends on the size of the loss, transaction costs, the capital gains position for the year and individual tax circumstances. It is not always the right move. A registered tax agent is the right person to assess this.

Your EOFY ETF tax statement

After 30 June each year, ETF fund managers issue an annual tax statement for each fund. This is sometimes called an AMIT (Attribution Managed Investment Trust) statement. It shows the taxable components of all distributions paid during the financial year, including:

• Cash income
• Franking credits
• Capital gains (both discounted and non-discounted)
• Foreign income and foreign tax offsets

This statement is what you or your tax agent uses to complete your tax return. Fund managers typically publish these statements in August or September, after the financial year has closed. They are available through your broker or the fund manager's website.

Keep records of all your ETF purchase prices (cost base) and the dates of purchase. These are needed to calculate any capital gain or loss when you eventually sell.

Using ETFLens tools before EOFY

A few ETFLens tools are useful to have looked at before 30 June:

• The ETF overlap checker shows if you are holding two funds that track the same index. If you are considering consolidating before EOFY, understanding the CGT implications first is important.
• The ETF Switch Calculator estimates the CGT cost of switching from one fund to another and calculates the break-even year. Useful if you are thinking about switching to a lower-fee fund.
• The Fee Calculator shows the long-term dollar cost of management fees. Not directly EOFY-related, but useful context for any decisions being made at this time of year.

General information only. Not financial advice. ETFLens does not hold an Australian Financial Services Licence. Tax laws are complex and individual circumstances vary. Always consult a registered tax agent or licensed financial adviser (AFS licence holder) before making any investment or tax decisions.