Why am I paying tax when I have made an investment loss?

Last Updated: 22 Feb 2016

Tax is payable on your taxable investment income, which may be calculated in a different way to investment returns.

Tax rules differ for different types of investment assets - therefore your taxable investment income will depend on the type of assets held by the fund you invest in.

Sometimes tax is payable even when there has been an investment loss – for example international equities are taxed at an assumed return of 5% (called the ‘Fair Dividend Rate’ method) regardless of the actual return for the year.

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