Commonwealth Bank of Australia (CBA) today announces the successful completion of its A$6 billion off-market share buy-back (Buy-Back) of CBA ordinary shares (Shares). The transaction has enabled CBA to buy back approximately 67.7 million CBA Shares, representing 3.8 per cent of the issued share capital of CBA. The Buy-Back reduces CBA’s Common Equity Tier 1 capital ratio by ~133 basis points (based upon 30 June 2021 reported capital).

The outcomes of the Buy-Back are as follows1:

Size of Buy-Back

A$6.0 billion

Market Price2


Final Buy-Back Discount


Buy-Back Price


Capital Component of the Buy-Back Price


Dividend Component of the Buy-Back Price


Tax Value3


Number of Shares bought back

67.7 million

Percentage of issued capital


Scale back (above Priority Allocation of 100 Shares)


The Shares bought back will subsequently be cancelled by CBA.

Scale back of Applications

Due to the strong demand for the Buy-Back, a scale back of Applications was required. In line with the terms of the Buy-Back booklet, the scale back was structured to minimise disadvantaging shareholders with a small number of Shares.

Eligible Shareholders who offered to sell their Shares at a 14% Discount or as a Final Price Application, had a Priority Allocation of 100 Shares (or lesser number) bought back before any scale back was applied. Applications for more than the Priority Allocation were accepted, but scaled back by 79.4% on a pro-rata basis.

In addition, successful shareholders who offered to sell all of their Shares at a 14% Discount or as Final Price Application and who would be left with 20 Shares or less as a result of the scale back, had all of their Shares bought back in full.

Applications at Discounts of 10-13% and Applications conditional upon a Minimum Price above the Buy-Back Price were not bought back. Shares that were offered but not bought back are expected to be released into shareholders’ holdings by Tuesday, 5 October 2021.

ATO class ruling

The Australian Taxation Office (ATO) is expected to confirm in its class ruling in relation to the tax implications of the Buy-Back that the Capital Component of the Buy-Back Price will be $21.66 and the fully franked Dividend Component of the Buy-Back Price will be $66.96. For Australian tax purposes, the sale proceeds of the Shares for entities other than companies will generally be taken to be $29.22, being the $21.66 Capital Component plus $7.56 which represents the excess Tax Value over the Buy-Back Price. The ATO has advised that they intend to issue their class ruling in relation to the Buy-Back no later than 3 November 2021.


Payments for Shares bought back under the Buy-Back will commence from Friday, 8 October 2021. Payments will be made via direct credit and a statement will also be sent out from this date.

For any queries on the Buy-Back, please visit the CBA Buy-Back website at or contact the CBA Share Registry information line on 1800 022 440 within Australia or on +61 1800 022 440 from outside Australia between 8.00am and 7.30pm (Sydney time) on business days.


  1. Terms used but not defined in this announcement are defined in the Buy-Back booklet dated 11 August 2021.
  2. The volume weighted average price of CBA ordinary shares on the ASX over the five trading days up to and including Friday, 1 October 2021, calculated to four decimal places.
  3. The Tax Value was calculated in accordance with the ATO’s Taxation Determination TD 2004/22, adjusted for the final dividend paid on 29 September 2021 as set out in the ATO’s Practice Statement PS LA 2007/9.