The equalisation payment is not treated as taxable income – it is a return of the investor's capital and will reduce the amount invested for the purposes of capital gains tax (CGT).

What does Equalisation mean on tax certificate?

When you buy a fund between ex-dividend dates any income which has been generated, but not yet paid out, is included in the price you pay for each unit. Because of this, the first income payment you receive is made up of two separate parts. ... This is known as an 'equalisation' payment.

What is income equalization?

Where an Investor buys Shares during a distribution or accumulation period, the price at which those Shares are bought may include an amount of income earned since the last distribution or accumulation by the fund - 'Income Equalisation'. ...