Debt securities - rates, eligibility, availability of relief etc. - Australia
Withholding Tax
| Standard rate of withholding tax: | 0%/10%/47% | Holding requirements / restrictions: | No |
Eligible beneficial owners | Relief at Source | Quick Refund | Standard Refund |
Residents of Australia (a) | Yes | No | Yes |
Tax exempt beneficial owners | Yes | No | Yes |
Non-residents of Australia (not tax-exempt, not DTT) | Yes | No | Yes |
a. There is no relief at source or reclaim of withholding tax available through Clearstream Banking for undisclosed Australian residents.
Interest on most Australian debt securities held in Clearstream Banking is not subject to withholding tax in Clearstream Banking and is systematically paid gross with no action required of the customer or beneficial owner to obtain exemption.
For debt securities that are not subject to withholding tax:
No withholding tax is applied to the interest payments on the following securities:
- Securities compliant with Section 128F of the Australian Income Tax Assessment Act 1936;
- Australian Commonwealth Treasury Notes;
- Global Bonds Denominated in AUD (“Matildas”).
Clearstream Banking applies 0% withholding tax by default for the above-mentioned securities. No certification or tax instruction is required for non-resident beneficial owners to obtain this exemption.
Important note: Australian residents must provide their Tax File Number (TFN) or Australian Business Number (ABN) to Clearstream Banking in order to be eligible for the 0% rate. Undisclosed Australian residents may, upon request of the customer, be subject to the maximum withholding tax rate (47.0%).
For debt securities that are subject to withholding tax:
Withholding tax is applied to the interest payments on securities not compliant with Section 128F of the Australian Income Tax Assessment Act 1936.
Clearstream Banking applies 10% non-resident withholding tax by default for non-certified undisclosed holdings.
Important note: For Securities not compliant with Section 128F, 47.0% withholding tax must be applied, upon request from the customer, if the underlying final beneficial owner is an undisclosed Australian resident and no ABN/TFN is provided to Clearstream Banking.
Clearstream Banking reminds customers that it is the customer's full responsibility to ensure that final beneficial owners are eligible for the tax rates applied, including the Clearstream Banking default rates.
It is the responsibility of the customer to comply with this obligation. Neither Clearstream Banking nor its local depository has any direct or indirect liability towards the Australian authorities in this regard.