• Overview
• Asset Portfolio
• Investor information
  • Events calendar
  • Share price
  • Publications
  • Results
  • Distribution information
  • Fees
  • Share registry
  • FAQs
  • Access your holding
• Announcements
• Corporate governance
• Register for news alerts
• Related sites
• Contact us

Distribution information

Distribution information
As a security holder in Challenger Infrastructure Fund (CIF), your investment comprises one unit in CIF Investment Trust 1 ('CIF1') (ARSN 114 139 703) and one unit in CIF Investment Trust 2 ('CIF2') (ARSN 114 139 632). The Responsible Entity of CIF is Challenger Listed Investments Limited. CIF units are quoted and traded as if they were a single security ('stapled security'), although they are taxed on a different basis.

Generally, CIF pays distributions semi annually. The expected amount and key dates for the distributions are advised via ASX announcements made in late June and late December with payments being made in February and August respectively.

Distribution Reinvestment Plan of CIF1

On 18 December 2006, CIF suspended its Distribution Reinvestment Plan ("DRP") until further notice.

Distribution History of CIF1

Distribution History of CIF2
To date CIF2 has not declared and paid any distributions to security holders.

Tax information

Distributions
As a CIF security holder you will receive a Distribution Statement each time CIF1 pays a distribution and a Dividend Statement each time CIF2 pays a dividend. 

Annual Taxation Statements
As a CIF security holder you will receive an Annual Taxation Statement in August. The Annual Taxation Statement has been prepared on the assumption that you are an Australian resident individual taxpayer and includes important tax information that should assist you (in conjunction with other relevant ATO publications) in completing your Annual Income Tax Return. In any event, you should seek independent tax advice in completing your income tax return and generally in relation to the taxation implications associated with your investment in CIF.
 
For Australian residents the distributions from CIF1 are recognized for tax purposes on a present entitlement basis rather than on a receipts basis.  For example, this means that distributions paid to you in February 2008 and August 2008 will need to be reflected in your 30 June 2008 income tax return. For tax purposes the distribution from CIF1 will generally comprise of taxable income and tax deferred amounts.

Security holders who are either Australian resident corporations or complying superannuation funds, or non-Australian residents should seek their own taxation advice with respect to the tax treatment of the distributions from CIF1 as well as the taxation implications associated with their investment in CIF.

TFN and Non Resident Withholding Tax deducted from Distributions
The current withholding tax rate that will be applied by the Responsible Entity of CIF to the CIF1 trust distributions received by resident investors who have not supplied their Tax File Number (TFN) or ABN is currently 46.5%, being the highest marginal rate of tax plus the medicare levy.

For non resident security holders, the rates of withholding from the components of the distribution are as follows:

*Fund payments generally represent Australian sourced net income and excludes tax deferred income and capital gains / losses resulting from the sale of CGT assets that are not taxable Australian property.

Apportioning the Value of your CIF Securities
Each unit in CIF1 and each unit in CIF2 remain separate assets for Australian capital gains tax purposes. For capital gains tax purposes, the cost of each CIF unit and the consideration received on disposal of each CIF unit will need to be apportioned between the unit in CIF1 and the unit in CIF2.

The Australian Taxation Office has advised that this apportionment should be done on a reasonable basis. One possible method of apportionment is on the basis of the relative Net Assets of CIF1 and CIF2.

To assist CIF securityholders with this apportionment, tabled below is the allocation of the net asset value between CIF 1 and CIF 2:

The taxation consequences of any investment in CIF stapled securities will depend on your particular circumstances. Potential investors and CIF security holders should obtain their own tax advice in relation to the taxation implications associated with their investment in CIF. Advice relating to personal tax issues should be obtained from your accountant or other professional adviser.

Non-Residents
Under current rules, Non-Tax Residents are exempt from Australian tax on any capital gains from CGT events in respect of CGT assets unless, broadly, the relevant CGT asset is taxable Australian real property, an 'indirect Australian real property interest' or a business asset of an Australian permanent establishment.

An indirect Australian real property interest arises where a Non-Tax Resident, together with its associates, holds 10% or more of the membership interests in an entity (e.g. shares in a company or units in a trust) and 50% or more of the underlying market value of the entity is attributable to taxable Australian real property.

If you are a Non-Tax Resident and you, together with your associates, hold (or have held) 10% or more of the units in CIF, you should consult your tax adviser in relation to this matter.