Cost base adjustments and common events

The cost base is not "what you paid".

It's what you paid, plus what changed.

And changes happen more often than people think.

The mini-story: "It was just one ETF, how hard can it be?"

You buy an ETF and forget about it.
Years later, you sell.

You didn't track DRP parcels.
You didn't track annual statements.
You didn't notice a return of capital component.

Now the cost base isn't clean — and small errors become big dollar differences across time.

The usual suspects

Most cost base complexity comes from:
- DRP (multiple parcels)
- corporate actions (splits, consolidations)
- return of capital
- managed fund distribution components
- property improvements and capital works
- partial disposals

You don't need to fear these.
You need to record them.

The "store the source documents" rule

When something happens that changes the cost base, keep the document that proves it.

Not for paranoia.
For accuracy.

How Self Managed helps

Self Managed's strength is that it treats cost base like a living record:
it evolves with the asset, instead of being reconstructed after the fact.

Pair with:
- Capital gains
- Wealth roadmap