Fourteen of the iShares exchange-traded funds (iShares ETFs) are offered to Australian investors by converting the current structure of CHESS depositary interests (CDIs) into units of a new Australian domiciled iShares ETF (Units) on a 1 for 1 basis (1 CDI for 1 unit).
The change will make investing in the iShares ETFs simpler by removing the need to file U.S. taxes (W-8BEN forms). This makes it a more accessible investment structure for Australian investors.
The changes relate to the following International iShares ETFs.
The ATO has published Class Ruling CR 2018/45 which confirms the availability of CGT rollover relief for CDI holder. This means the capital gain the investor has made upon the disposal of a CDI to the Trustee of the relevant New Trust can be disregarded.
There are two options available:
Option 2: Create a new investment account
Replace the description of the existing account
Navigate to Fund Level > Investments > Browse Holding Account
- Click on the investment
- From the investment detail page, click on Edit button
- Copy the "Issue Description" to "Description"
- Click on Save
Create a new Investment Account
If you want to keep the original security issue description of iShare investment for historical reporting comparison purposes.
Navigate to Fund Level > Investments > Investment Account
- Create a new investment account for the relevant iShare ETFs Security Issue code, e.g. IVV
- Choose a different holding account code e.g. IVV_1
Navigate to Fund Level > Transactions > Investment - Corporate Action > Code Change
Navigate to Fund Level > Transactions > Investment - Corporate Action > Takeover or Merger
- Process a Code Change event or a Takeover or Merger event (with rollover relief) to transfer the cost base and units to this new investment account.
The new holding account will have a new issue description.