This helps you record Listed Investment Company (LIC) capital gain dividends correctly so your Taxable Income Report is easier to review at tax time.
What this article is for
This article is for Australian LIC holdings that pay company dividends and include an LIC Capital Gain amount on the dividend statement or annual tax statement.
In Navexa, company dividends are treated as Non-Trust Income. Trust-style income, such as ETF and managed fund distributions, follows a different workflow.
What Navexa does with LIC Capital Gain amounts
When an LIC Capital Gain amount is recorded on a dividend, Navexa can reflect the deductible portion in the Taxable Income Report under D8 – Dividend deductions @ 50%.
In Navexa’s Taxable Income Report, D8 is defined as the amount of an LIC capital gain you can claim as a 50% deduction if you were an Australian resident when the LIC paid the dividend.
Before you start
Before you edit the dividend, have the LIC’s official dividend statement or annual tax statement ready.
Navexa recommends using the official document from the holding when adding or editing dividend records.
Use this article if:
The holding is an LIC paying a company dividend
The statement shows an LIC Capital Gain amount
You want that amount reflected in your Taxable Income Report
Do not use this workflow for:
ETFs
Managed funds
REITs
Other trust-based investments
For those, use the trust workflow instead (see Using the ETF Distributions Pro-Rata Tax Form).
How to record an LIC Capital Gain dividend
Open the dividend record
Open the relevant holding in your portfolio.
Click the Income tab.
Find the dividend you want to update.
Click the three dots next to the dividend.
Select Edit.
Check the main dividend details
Before entering the LIC Capital Gain amount, make sure the main dividend fields match the issuer statement:
Ex-Dividend Date
Paid Date
Franked Amount
Franking Credits
Unfranked Amount
For LIC company dividends, the record should be treated as Non-Trust Income, not trust income.
Enter the LIC Capital Gain amount
Open Additional Fields and enter the value shown on the LIC statement in LIC Capital Gain.
Use the exact amount from the statement. Do not estimate it from the cash payment alone.
Save the dividend
Click Update Dividend to save the changes.
Where this appears in the Taxable Income Report
Run the report
Go to Tax Reporting in the top navigation.
Select Taxable Income.
Choose the correct Financial Year.
Check the LIC deduction field
In the report, the LIC deduction appears under:
D8 – Dividend deductions @ 50%
This field reflects the deductible LIC capital gain amount at 50%.
Check the income section
The dividend itself will still appear in the Non Trust Income section, because LIC company dividends are treated as non-trust income in Navexa.
What to do if D8 is still showing as zero
If D8 is still zero after updating the dividend, check the following:
The correct dividend was edited
The LIC Capital Gain field was entered on that dividend
The report is being viewed for the correct financial year
The dividend is being treated as Non-Trust Income
The dividend was saved after the change
If the holding is actually trust-based, use the trust workflow instead (see Using the ETF Distributions Pro-Rata Tax Form).
Common questions
Does Navexa calculate LIC Capital Gain deductions automatically?
The safest workflow is to enter the LIC Capital Gain amount from the LIC’s official statement on the dividend record, then review the Taxable Income Report.
Navexa’s public Help Center explains the dividend edit workflow and the D8 output, but you should still check the final values against the issuer statement before relying on them.