What are Shares & ETFs in Canwi?
Shares & ETFs covers listed shares and exchange-traded funds you own outside super. Add them as an asset and Canwi projects their growth, dividend income and tax over time.
You can add as many as you like. For example, you might have "Aussie Shares" and "US ETFs".
How to add Shares & ETFs
Go to Plan → Balance Sheet → Assets.
Select Add Asset, then choose Stocks. You can also select Add Shares & ETFs under the Shares & ETFs section.
Fill in the details below.
Select Save changes.
Your holding then appears under Shares & ETFs. To change it later, open it and select Edit.
Basics
Nickname Asset
A name to help you recognise it, like "Aussie Shares" or "Henry's ETFs".
Asset Owner(s)
Who owns the shares. Select one or more people. If you select more than one, ownership is split evenly by default (e.g. 50% each). Turn on Custom split to set your own percentages. Ownership decides who pays tax on the income and gains.
What it's worth
Purchase Price
What you paid in total. If you bought in several lots (for example, by dollar cost averaging), enter your total cost base for the holding. Canwi uses this to estimate Capital Gains Tax if you plan to sell, using an average cost base approach.
Purchase Year
The year you bought them.
Current Value
What the holding is worth today.
Historical growth rate (est.)
Once you've entered the three fields above, Canwi works out the average annual return your holding has delivered since you bought it and shows it here. It's applied to Annual Growth Rate automatically. You can overwrite it.
This is a reference only. Past performance isn't indicative of future performance.
Growth & income
Annual Growth Rate
The yearly growth you expect from the value of the holding. It compounds annually. For example, $100,000 at 5% becomes $105,000 after year one and $110,250 after year two.
Enter the headline return you'd like to use. You don't need to adjust for inflation. Canwi handles that with the Today's Dollars / Actual Dollars selector at the top.
A high rate compounded over many years produces a very large number, so make sure your assumption is realistic.
Dividend Yield Rate
The yearly dividend income as a percentage of the holding's value. It's based on the current value in each projected year. For example, $100,000 with a 4% yield pays $4,000 of taxable income that year.
Leave at 0% if the holding pays no dividends.
Franked Portion
How much of your dividends are franked. Australian companies pay tax on their profits before paying dividends (typically 30%). A franked dividend carries a credit for that tax.
Enter 100% for fully franked, 0% for unfranked, or something in between.
Franking credits are added to your taxable income, then subtracted from your tax bill. If the credits exceed the tax you owe, the balance is refunded to you in cash.
You'll find the franking percentage on your dividend statements.
Reinvest dividends
Off: dividends are paid out as cash and added to your yearly cashflow.
On: dividends are reinvested into the same portfolio, so the holding grows faster. Reinvested dividends still count as taxable income.
Should I enter my shares as one holding or itemise them?
For most plans, a single holding is the easier option. Enter each portfolio as one asset, or group similar holdings together, using the total cost base. Canwi estimates CGT on a sale using an average cost base across the holding.
If you want a more accurate CGT estimate, you can itemise instead. Add each parcel (each purchase) as its own asset, with its own purchase price, purchase year and current value. This is manual, so you'll need to enter each parcel yourself. You can then sell just one parcel and Canwi calculates the CGT on that parcel alone.
Itemising is worth it when:
You bought the same shares at very different prices or times.
You plan to sell only some parcels, for example the highest cost ones to reduce your gain.
For example, instead of one "Aussie Shares" asset, you could add "Aussie Shares – 2019 parcel" and "Aussie Shares – 2022 parcel". Use a clear nickname for each parcel so you can tell them apart in your plan.