Exchange Facility

Exchange your Australian Government Securities for exchange-traded Australian Government Bonds

The Australian Government has established a scheme (the Scheme) that enables investors to voluntarily exchange their Treasury Bond and/or Treasury Indexed Bond holdings residing on the Commonwealth Registry of Inscribed Stock into the equivalent exchange-traded Australian Government Bonds (eAGBs).

eAGBs provide the same economic characteristics their equivalent Australian Government Securities. However, investors in eAGBs have access to a number of service-related benefits not currently received by investors in Australian Government Securities. These are outlined below.

  • Online access to your holdings through Computershare’s Investor Centre website, enabling investors to manage their account and investor statements.
  • The ability to buy and sell all Australian Government Bond lines on the Australian Securities Exchange (ASX) in trade sizes with a minimum of $100 face value.
  • Real-time market pricing of eAGBs provided by ASX appointed market makers during standard trading hours.

The Scheme is open to investors on an ongoing basis from 1 July 2018. However, at its sole discretion, the AOFM reserves the right to close the Scheme at any point.

The Australian Taxation Office has provided a class ruling on the exchange facility (CR 2018/4) determining that a tax event is not triggered for investors that meet certain conditions. If planning to participate you should seek independent advice in relation to the ruling which can be accessed at https://www.ato.gov.au/law.

Eligibility for participation

If you are an executor or administrator finalising a deceased estate with Treasury Bonds and/or Treasury Indexed Bond holdings, or you are acting as an attorney for a Treasury Bond and/or Treasury Indexed Bond holding, please contact Computershare to determine whether you are eligible to participate in the Scheme.

Participation

To participate in the Scheme please contact Computershare to request an exchange application form.

You will need a Clearing House Electronic Sub register System (CHESS) Holder Identification Number (HIN) to exchange your holdings to exchange-traded Australian Government Bonds. To obtain a CHESS HIN, simply complete the electronic broker nomination form at www.asx.com.au/products/bonds/exchanging-your-treasury-bonds-for-exchange-traded-treasury-bonds.htm. Alternatively, if you already have a CHESS HIN for other investments you may be able to use your existing HIN.

Please be aware that in order for your Treasury Bonds and/or Treasury Indexed Bond holdings to be exchanged, the registered details of the CHESS HIN account must be the same registered details as is recorded on the Inscribed Stock Register. In particular, your name and address details must be identical.

If you wish to update your registered details on the Inscribed Stock Register, please contact Computershare Investor Services Pty Limited (contact details provided below).  If you wish to update the registered details of your CHESS HIN account, please contact your broker.

If you choose to participate the Australian Government will not charge you any fees to exchange your existing investments for eAGBs.

Further Information

If you would like further information on eAGBs, please visit:

www.australiangovernmentbonds.gov.au

www.asx.com.au/products/bonds/exchange-traded-agbs.htm

www.moneysmart.gov.au/investing/investments-paying-interest/bonds/australian-government-bonds

Contact details

Computershare Investor Services Pty Limited (the Registrar)

By Phone

(inside Australia) 1800 674 996
(outside Australia) +61 3 9415 4390

By Mail

Computershare Investor Services Pty Limited
GPO Box 2237
Melbourne VIC 3001
Australia

By Email

cgs@computershare.com.au

AOFM

By Phone

+61 2 6263 1111

 

Last updated: 15 June 2018