What are the tax implications of the payment?

  • The payment relates to listed securities held in a superannuation or pension wrap account, or an investor-directed portfolio service account, and is compensation to customers of CBA Group Licensees for any loss they may have suffered as a result of any failure to communicate details of corporate actions related to the listed securities they held.

Payments into a superannuation and pension wrap account: 

  • As the payment has been made to your superannuation or pension account, the trustee is responsible for the tax-related consequences of receiving the payment. If you have any questions regarding the tax implications of this payment, please discuss these with the trustee.

Payments into an investor-directed portfolio service wrap account: 

  • The payment relates to listed securities held in an investor-directed portfolio service account and is compensation for any loss you may have suffered as a result of any failure to notify you of corporate actions. The general tax treatments are:

    1. The compensation component is generally assessable as a capital gain. You may be entitled to utilise the discount method (if applicable) to calculate the capital gain where the lost opportunity happened more than 12 months before that time
    2. The interest component is assessable as ordinary interest income

    These should be included in your tax return for the year you receive these payments. This applies if:

    1. You are an individual, a company or a trust.
    2. You are an Australian resident for tax purposes

For your information

  • The comments in the section headed “Australian Tax Implications of the payment” have been agreed with the Australian Taxation Office and are for general information purposes only. We are not in a position to provide you with specific taxation advice regarding your particular circumstances. We recommend that you obtain the advice of your accountant or other independent taxation adviser regarding the tax consequences of your circumstances. If you need to discuss your tax consequences with the Australian Taxation Office, quote reference number 1-ZZXDIQX