Austraclear

In 2014 The Australian and US governments signed an intergovernmental agreement (IGA) in respect of the US Foreign Account Tax Compliance Act (FATCA). This agreement is intended to assist US efforts to improve compliance with US tax laws.

The Common Reporting Standard (CRS) is a global standard for the collection, reporting and exchange of financial account information of foreign residents, to combat tax evasion.  CRS obligations commenced in Australia on 1 July 2017.

The IGA and CRS impose certain due diligence and reporting obligations on Financial Institutions (comprising Custodial Institutions, Depository Institutions, Investment Entities and Specified Insurance Companies).

Austraclear is a Financial Institution under the IGA and CRS as it holds financial assets in its role as a central securities depository.

This means Austraclear must collect and report financial account information about a participant who holds Deposited Securities in the Austraclear System to the Australian Taxation Office if the participant or individuals controlling the participant are foreign tax residents unless an exception applies.

To support compliance with the IGA and CRS, Austraclear requires participants that hold Deposited Securities in the Austraclear System to:

• meet eligibility criteria that align with the IGA and CRS; and
• certify their status under the IGA and CRS and to notify Austraclear of any change in that status.

Austraclear has the benefit of an exemption for IGA reporting in respect of financial accounts held by or through other Financial Institutions.

This exemption is set out in the Memorandum of Understanding (MOU) released with the IGA. 

Austraclear does not fulfil IGA or CRS reporting obligations on behalf of Issuers or participants. However, Austraclear makes the following reports available to enable Issuers and participants to undertake IGA and CRS identification and reporting themselves:

Issuers and participants should store reports at relevant times in order to undertake their reporting. Archived reports are also available from Austraclear.

Issuers and other third parties who require a certification in relation to Austraclear’s tax residency and status for the purpose of the IGA and CRS should refer to Austraclear’s self- certification.