Australian (ASX) Stock Market Forum

Tax treatment for ANZ Bonus Options Plan

Jun 30, 2013
Hi there
Does anyone know how ANZ BOPs should be treated for tax purposes (inividual return)?

in a dividend reinvestment Plan (DRP) arrangement you are effectively paid the cash & then you repurchase the shares from that cash/ YOu also get full details of franking arrangements.

My reading (various ATO docs etc) is that they are not income (there is no franking or unfranked amounts & no imputation credits, therefore they are effectively an asset/capital so would be taxed on sale as a capital gain event?

ATO have referred me to ANZ stating that if its a bonus issue then the company is required to advise tax implications to its shareholders

ANZ (computershare) won't give advice is that they are not allowed/qualified to give tax advice because it differ depending on circumstances

The last thing I want to do is not declare them as income & then end up with a huge tax bill.

THks in advance
Jan 4, 2017
Amazing they didn't cite the Privacy Act!!!

Hmm,, another non-answer.

When I asked my accountant about them he had no idea what they were!!
is the new link.

Even though the section on Tax says nothing ....
But its all in the wording (4.1)

"amount of each Eligible Dividend ... payable to a ... Participant ... will be foregone ... . However, the Board shall issue to the ... Participant Shares determined under rule 4.4."

So its not income as a dividend. Its a share issue subject to capital gains.

The ATO should have told you to look here