Betashares 28BB ETF Projects 31% Taxable Income with Full Cash Distribution in FY25
Betashares Capital Ltd has released the estimated annual distribution components for its 28BB Fixed Term Corporate Bond Active ETF, signalling a 31% attributed income and a full cash payout for the 2024-25 financial year.
- Estimated 31.02% attributed taxable income for FY25
- 100% estimated cash distribution to investors
- Distribution primarily from Australian interest income subject to non-resident withholding tax
- No foreign income or capital gains components reported
- Significant AMIT cost base decrease adjustment of 68.98%
Distribution Breakdown Highlights
Betashares Capital Ltd has announced the estimated distribution components for its Betashares 2028 Fixed Term Corporate Bond Active ETF (ASX – 28BB) for the financial year ending 30 June 2025. The fund projects an attributed taxable income of 31.0213% alongside a full 100% cash distribution to unitholders. This payout reflects the fund’s income primarily derived from Australian interest sources, notably interest subject to non-resident withholding tax, which accounts for nearly 29% of the distribution.
Tax Components and Adjustments
The distribution breakdown reveals no foreign income or capital gains components, indicating a focus on domestic income streams. Additionally, the fund reports a substantial AMIT (Attribution Managed Investment Trust) cost base decrease adjustment of 68.9787%, which affects investors’ cost bases for tax purposes. This adjustment is a key feature of the AMIT tax regime, allowing the fund to attribute income differently from the cash distributed, potentially impacting investors’ tax calculations.
Investor Implications and Transparency
Investors should note that the figures provided are estimates and the final tax component details will be disclosed in the forthcoming AMMA (Attribution Managed Investment Trust Member Annual) statement. Betashares has emphasized that the fund units trade on the ASX at market prices, not net asset value, and that investment risks, including potential delays in repayment and loss of income, remain. The announcement also reiterates the importance of consulting professional advice regarding investment and tax implications.
Context within the ETF Market
This distribution announcement aligns with Betashares’ transparent approach to providing detailed tax and income information to investors, a critical factor for those relying on fixed income ETFs for steady cash flow. The absence of foreign income or capital gains components may appeal to investors seeking straightforward Australian income exposure without the complexity of cross-border tax considerations.
Looking Ahead
As the financial year progresses, market participants will be watching for the final AMMA statement to confirm these estimates and to assess any shifts in the fund’s income composition. The ETF’s performance and distribution profile will continue to be a focal point for income-focused investors navigating the evolving fixed income landscape on the ASX.
Bottom Line?
The 28BB ETF’s FY25 distribution signals steady Australian income with tax nuances that investors should monitor closely.
Questions in the middle?
- Will the final AMMA statement confirm the absence of foreign income and capital gains?
- How will the significant AMIT cost base decrease adjustment impact investor tax outcomes?
- Could changes in interest rates or credit conditions affect future distribution components?
