Frequently Asked Questions

We are not licensed to provide tax advice, and tax outcomes will vary depending on your personal tax situation. You should consult your tax adviser.

Taxation on income
Investments in your Vanguard Personal Investor Account can derive income, such as distributions from managed funds and ETFs and dividends from shares. As you remain the beneficial owner of the investments in your account, the income tax consequences of investing should generally be the same as if you held the investments directly.

Generally, income received from investments in managed funds and ETFs held by you in your Vanguard Personal Investor Account will form part of your assessable income, including any franking credits and/or foreign income tax offsets. This is the case regardless whether the money is actually paid to your Vanguard Cash Account or reinvested.

Franking credits
Your income derived from investments may include franking credits attached to franked dividends in respect of Australian shares. Subject to relevant qualification requirements (including a 45-day holding period) these franking credits will need to be included in your taxable income and, depending on your particular circumstances, may be available to offset your tax liability. You may also be entitled to a refund if the franking credits exceed your total income tax liability.

Foreign income
Income received from sources outside Australia may be subject to tax in the country of source. Australian tax resident investors may be entitled to claim a foreign income tax offset against their Australian tax liability in respect of this tax.

A 0.10% per annum Account Fee only applies to the value of holdings in ASX direct shares held within a Vanguard Personal Account. No Account Fee is levied on Vanguard managed funds, Vanguard ETFs or cash held with a Vanguard Cash Account*.

The Account Fee is calculated daily and deducted quarterly in arrears from your Vanguard Cash Account.

Vanguard Personal Investor Accounts holding ASX direct shares that are opened or closed part-way through a quarter will be charged the Account Fee on a pro-rata basis.

* There is an Indirect Cash Management Fee of 0.50% per annum of the balance of your Vanguard Cash Account.

The Indirect Cash Management Fee is the amount Vanguard receives from the financial institution where your cash is held on deposit.

This amount is calculated daily on the value of your Vanguard Cash Account and is received monthly by Vanguard before the cash account interest rate to investors is declared. The fee is not deducted from your account.

The Vanguard Personal Investor fees were revised on 18 August 2021.

What were the changes?

Vanguard Personal Investor has a $9 flat brokerage fee per trade whenever you buy or sell Australian-listed Vanguard ETFs and ASX direct shares.

Brokerage is charged by Vanguard for providing on-market trading services to Vanguard Personal Investor clients. Vanguard pays for third-party trading services from its own funds, including broking services, ASX data and settlements.

Managed funds and ETFs are managed and operated by fund managers who charge fees and other costs for the management and administration of those products. The investment returns of each product are net of fees and other costs.

For further information regarding the fees and other costs for each fund, refer to the Product Disclosure Statement or other disclosure document for the relevant managed fund or ETF.

No Account Fee is charged on any cash held in your Vanguard Cash Account. There is an Indirect Cash Management Fee of 0.50% per annum of the balance of your Vanguard Cash Account.

The Indirect Cash Management Fee is the amount Vanguard receives from the financial institution where your cash is held on deposit.

This amount is calculated daily on the value of your Vanguard Cash Account and is received monthly by Vanguard before the cash account interest rate to investors is declared. The fee is not deducted from your account.

You can view details of the fees paid when you log into Vanguard Online and select 'Cash'.

This information also can be found on your Vanguard Personal Investor quarterly and annual statements.

The types of fees you may pay when investing in managed funds are outlined below.

Not all funds charge all of these fees, so check the product disclosure statement for information on fees before you invest.

For example, Vanguard does not charge entry or exit fees, contribution or switching fees (apart from the usual buy/sell spreads that apply to all transactions) and does not pay commissions to advisers.

Entry or establishment fees A fee for opening your account. This can be up to 5% of your initial investment.

Contribution fee For initial and subsequent investments you make.

Withdrawal fee A fee for withdrawals you make from the fund.

Exit or termination fees A fee for closing your account. Sometimes this fee applies if you close your account within a specific timeframe.

Ongoing fees Charged by all funds, this fee covers investment management, the administration costs of running a fund, such as accounting, legal and audit fees, fund documentation and investment costs. It excludes transaction costs covered in the buy/sell spread.

Switching fees A fee for switching between funds or investment options.

Adviser service fee or trailing commission A fee charged by your adviser for advice about your investments in the fund. An adviser may also receive other amounts as commission.

Buy/sell spread While not officially a fee, the buy/sell spread is the difference between the buy and sell unit prices of the fund. It reflects the transaction costs a fund incurs when buying and selling assets such as brokerage, custody costs, government taxes and bank charges.
 
Master trusts and platforms Master trusts or wrap account platforms can charge additional administrative fees on top of the investment option fees.

Vanguard exchange traded funds (ETFs) and managed funds generally provide access to the same underlying asset class.

For example, the Vanguard Australian Shares Index ETF and the Vanguard Australian Shares Index Fund own the same underlying assets.

The difference between the two is that a managed fund is not listed on a stock exchange, whereas an ETF is and thereby enables greater trading flexibility, liquidity and intraday pricing. Your choice will come down to which type of investment vehicle best suits you.

You can learn more about managed funds and ETFs in the Learn section of the Vanguard website.

No. There are currently no exit fees or early withdrawal fees.

Unlisted managed funds may charge investors an estimate of the transaction costs that the fund will incur to buy or sell its underlying assets. This buy/sell spread is incorporated into the price paid to purchase or sell units and the amount of the spread accrues to the fund and reflects the difference between the buy and sell unit prices of the fund. It reflects the transaction costs a fund incurs when buying and selling assets such as brokerage, custody costs, government taxes and bank charges.

For further information regarding the fees and other costs for each managed fund, refer to the PDS or other disclosure document for the relevant managed fund or ETF.

Your income derived from investments may include franking credits attached to franked dividends in respect of Australian shares. Subject to relevant qualification requirements (including a 45-day holding period) these franking credits will need to be included in your taxable income and, depending on your particular circumstances, may be available to offset your tax liability. You may also be entitled to a refund if the franking credits exceed your total income tax liability. Please consult your tax adviser.