Non-resident using Commsec trading account

[mompi]

HI Guys. I am a non-resident Australian. I have been trading for several years on the net using a Commsec trading account and CDIA account. Recently I discovered I need to contact Commsec concerning reducing my TFN withholding tax. I have been told that the Commsec trading account is only for residents of Australia and have also seen that on the commonwealth bank home page. I was a non- resident when I started these accounts and made no secret about me living overseas at the time. I listed my Australian address as my residency. The staff at the branch I went to said nothing at the time. So what is worrying me is I need to notify Commsec that I am now a non-resident and have to change my address to the country I am living in. So if Commsec cancel my trading account I will be screwed. Looking for some good advise please. Thanks.

 

[bellenuit]

HI Guys. I am a non-resident Australian. I have been trading for several years on the net using a Commsec trading account and CDIA account. Recently I discovered I need to contact Commsec concerning reducing my TFN withholding tax. I have been told that the Commsec trading account is only for residents of Australia and have also seen that on the commonwealth bank home page. I was a non- resident when I started these accounts and made no secret about me living overseas at the time. I listed my Australian address as my residency. The staff at the branch I went to said nothing at the time. So what is worrying me is I need to notify Commsec that I am now a non-resident and have to change my address to the country I am living in. So if Commsec cancel my trading account I will be screwed. Looking for some good advise please. Thanks.

If there is a lot of money involved, I would suggest seeking financial advice. But the following may work. If your main issue is having your portfolio liquidated at an inopportune time, perhaps you should open an account with some international broker that deals in Australian Shares (Interactive Brokers come to mind) and then transfer your shares to the new account from your CommSec account.

So long as the ATO doesn't see you as having changed status (e.g. they saw you as a non-resident taxpayer up to now and also see you as such after the transfer), then they would not deem the transfer as a capital gains tax event (assuming you are under the CGT system). If you are a trader and not under the CGT system then the transfer shouldn't be a issue anyway. Implicit is that the transfer is to the same legal entity (individual, trust or private company, whichever of whom is the current owner of the shares)

So long as you have been above board with the ATO, it is CommSec that made a mistake by allowing you to open an account that was not designated for non-residents.