Set up a return of capital, interest payment, or withholding tax refund

In addition to dividend and distribution payments, you can make the following payment types:

For companies:

• Return of capital
• Interest payment
• Withholding tax refund

For unit trusts:

• Withholding tax refund

To make one of these payment types:

1. From the menu, go to Payments and click on Payments.
2. Here you will see the list view of existing payments. On the top right click + Create new payment.

The setup of a payment is separated into the following sections:

Payment setup

• From the Select payment type dropdown, choose Return of capital, Interest payment or Withholding tax refund.
• Select one or multiple securities who are entitled to the payment. Or, check the Include all securities box to make a payment to all securities.
• Include all investors (for the securities selected above) dropdown:
  • Click 'Yes, include all investors' to include all investors.
  • Click 'No, I want to exclude some investors from this payment' to exclude some investors.
  • Click 'No, I want to manually select who will be included in the payment' to include some investors.
• Enter an ABA payer name. This will appear in the transaction record in your payees’ bank account.
• Add a Payment description, e.g. “30 June 2020 return of capital”.
• Select a Payment rounding option. See Additional Information below for details on rounding options.

Cash components

For a return of capital

• Choose whether to enter cash payment instructions on a Cash per security basis or as Total cash across all securities (for example $0.10 per security or $100,000 in total).
• Enter the amount of the Return of Capital.

For an interest payment

• Choose whether to enter cash payment instructions on a Cash per security basis or as Total cash across all securities (for example $0.10 per security or $100,000 in total).
• Enter the amount of the Australian interest income.

For a withholding tax refund

• The amount must be entered as Total cash across all securities.
• Enter the amount of the Withholding tax refund.

Withholding tax exempt threshold

For interest payments only

Select Yes to Apply withholding tax to this payment. 

• If Yes is selected, the system will calculate and report on withholding tax for qualifying domestic and international investors (for example, where no tax identification number is provided).
  • Select Yes or No for Is this payment for a full financial year?.
    • if No, select the Company financial year end; and
    • the Payment period dates.

Dividend reinvestment plan participation (if available)

For interest payments only

Select Yes to Allow DRP on this payment.

• Enter a DRP price per security. This value can be edited up until record date.
• Select a rounding option for units earned. See the Additional Information section below for further information on DRP unit rounding.

Payment to investors without bank account details

Choose if you will Allow cheque payments for investors without bank account details on record.

• If Yes, enter a cheque starting number. The system will record cheque numbers incrementally from this number. This feature is designed to assist with the reconciliation of cheque payments.
• If No, you may either:
  • Retain payment. When this alternative is selected no payment will be processed until after a bank account is provided by the investor; or
  • Force DRP. This option is available for interest payments if you selected allow DRP on this payment. Where Force DRP is selected, any investor without bank details will receive their full dividend in DRP even if they have No Participation or Partial participation choices elected for the DRP.

Payment dates

• For a Return of capital or Interest payment, enter a Record date. Securities must be owned on the record date for the investor to be eligible for payment.
  • Any updates to an investor’s payment preferences are not taken into account from record date onwards. (For example: if John is supposed to be paid with a cheque and then adds his bank account details, he will still be paid via cheque. His new payment preferences would only be applied to the next scheduled payment)
• For a Withholding tax refund, enter an Effective payment date. This date will determine which financial year this payment is counted in for ATO reporting purposes.
• Enter a Payment date. This is the date on which you agree to transfer funds to your investors.

Notice of payment

Finally you can Attach a Notice of payment document to send to investors. Note, whether or not any notice is attached, the system will generate and distribute a standard dividend/payment statement for each investor.

Next

Click the Next button to review your payment and then schedule and notify investors. If you aren’t ready to notify you can leave the payment in draft mode and return to it later from the Payment list view.

Additional Information:

Rounding can be applied to payments and to units earned in a DRP. Both scenarios offer three rounding options:

• Payment rounding. The payment for each investor will be rounded:
  • To the nearest cent.
  • Up to nearest cent.
  • Down to nearest cent.
• DRP Units earned rounding. The DRP units earned for each investor will be rounded:
  • To the nearest unit.
  • Up to nearest unit.
  • Down to nearest unit.