Interest Withholding Tax

Legislation was passed in 2008 and 2009 amending section 128F of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936) so that government securities issued in Australia (in addition to offshore issuance which was previously eligible for exemption) are now eligible for exemption from non-resident withholding tax (IWT). As a result, interest payments on TCV’s domestic securities are eligible for exemption from IWT with effect from 9 December 2008 provided the TCV issuance satisfies or would have satisfied the public offer test.

Issues of securities considered to meet the Public Offer Test
To assist with enquiries from Australian custodians holding TCV Domestic Inscribed Stock on behalf of offshore investors, TCV has identified the issues in the table below as issues which TCV believes have satisfied or, in the case of issuance before 9 December 2008, would have satisfied the public offer test when they were made.

Domestic Inscribed Stock    
AU0000XVGZF2 6.0000 15/06/20
AU0000XVGHK0 1.7500 27/07/21
AU0000027948 2.2500 29/10/21
AU0000XVGZZ0 6.0000 17/10/22
AU0000075624 1.0000 20/11/23
AU0000XVG2B1 5.5000 17/12/24
AU3SG0002090 BBSW + 38bp 02/04/25
AU0000XVGZJ4 5.5000 17/11/26
AU0000085631 1.2500 19/11/27
AU0000XVGHI4 3.0000 20/10/28
AU0000042004 2.5000 22/10/29
AU3SG0001225 4.7500 20/11/30
AU0000078552 1.5000 20/11/30
AU3SG0001175 4.2500 20/12/32
AU0000XVGZI6 6.5000 15/03/33
AU0000048274 2.2500 20/11/34
AU0000XVGHJ2 0.0000 21/01/36
AU0000XVGHH6 5.0000 20/11/40
AU3CB0271955 2.2500 20/11/41
AU0000XVGHL8 4.0000 06/11/47

TCV has a number of lines of Domestic Inscribed Stock outstanding which are not part of our domestic benchmark program. Domestic custodians holding such stock on behalf of non-residents should approach Computershare on a case-by-case basis to clarify the IWT status of this stock.

For further information, please contact Daryl Barr, Manager, Banking & Settlements on (03) 9651 4843.