ASX FAQs

1. How do I access the Australian Shares (ASX100) Option?
2. Am I eligible to invest in the Australian Shares (ASX100) Option?
3. How much of my account balance can I invest in the Australian Shares (ASX100) Option?
4. How can I purchase shares in the Australian Shares (ASX100) Option?
5. Where can I get a copy of the Annual Report of a company in the S&P/ASX100?
6. When will the share ‘trade' occur?
7. Which broker does Cbus use?
8. Can I use my own broker to buy or sell shares in the Australian Shares (ASX100) Option?
9. Do I have to pay brokerage?
10. Is there a minimum trading value?
11. What happens if I exceed the maximum allowable shareholdings?
12. What is a dividend?
13. Can I purchase more stocks in the Australian Shares (ASX100) Option with my dividends?
14. Do I need to declare dividends in my tax return?
15. What is an ex dividend date?
16. What is Capital Gains Tax?
17. How is Capital Gains Tax calculated?
18. Do I have to include Capital Gains Tax on my Tax return?
19. What does it mean when a stock has been suspended?
20. What is a Franking Credit?
21. What is a Franking Dividend?
22. What happens to my buy/sell request if a stock is suspended?

1. How do I access the Australian Shares (ASX100) Option?
All members of Self-Select have automatic access to the Australian Shares (ASX100) Option.

2. Am I eligible to invest in the Australian Shares (ASX100) Option?
To be eligible to buy shares in the Australian Shares (ASX100) Option you must have at least $20,000 in your account, and you must have already qualified for Self-Select (your balance must have been at least $50,000).

3. How much of my account balance can I invest in the Australian Shares (ASX100) Option?
You will be able to purchase stocks up to a maximum of 50% of your total account balance in the Australian Shares (ASX100) Option. The maximum you can purchase in any single stock is 12.5% of your total account balance. Where your holdings of any stock exceeds 20% of your total account balance, you may become ineligible to purchase any further shares until your account is rebalanced.

4. How can I purchase shares in the Australian Shares (ASX100) Option?
Applications must be made either online through the Cbus Member Website SuperSite or on the Buy/Sell Shares form available through our Customer Service Centre.

5. Where can I get a copy of the Annual Report of a company in the S&P/ASX100?
You can obtain a copy of an Annual Report either via the company's website, by contacting the company by phone and requesting a copy, or by calling Cbus' Customer Service Centre on 1300 361 784.

6. When will the share ‘trade' occur?
Share trades occur weekly. Applications to buy or sell stocks in the Australian Shares (ASX100) Option that are received by Cbus Administration before 1pm each Friday, or by midnight on Sunday for trades submitted online via SuperSite will be implemented on the first trading day of the following week. Trading day is usually a Monday, or the first (Sydney) business day of the week.

7. Which broker does Cbus use?
Cbus uses Macquarie Equities Limited to trade stocks.

8. Can I use my own broker to buy or sell shares in the Australian Shares (ASX100) Option?
No, the share offer is only available through the arrangements with Cbus.

9. Do I have to pay brokerage?
Yes, the following brokerage costs are charged to members when buying or selling stocks: Macquarie Equities Limited will charge members the following brokerage per trade:

Minimum brokerage per trade $13.75 (including GST); or
33 basis points (0.33% including GST) for trades less than $10,000, whichever is the greater;
For trades greater than $10,000, the cost will be 24.2 basis points (0.242% including GST)."

10. Is there a minimum trading value?
The minimum trading value in units, of each buy order must equal at least $1,500. You can check daily share prices through the Cbus Member Website SuperSite, daily newspapers or through the ASX website. There is no minimum number of units for a ‘sell' order.

11. What happens if I exceed the maximum allowable shareholdings?
You can purchase up to 12.5% of your total account balance in any single stock, up to a maximum of 50% of your total account balance in the Australian Shares (ASX100) Option.

Where your holding in any single stock exceeds 15% (which may occur through an increase in the value of your shareholding) we will contact you via letter and request that you rebalance your shareholdings.

If your holdings of any single stock increases to 20% or more of your total account balance, or if the total holdings of your stocks increase to over 55% of your account balance, you will become ineligible to purchase any further stocks.

12. What is a dividend?
A dividend is the amount a company pays out to shareholders from its after-tax earnings. Dividends are usually issued twice a year, after the end of half year, and the end of the financial year.

13. Can I purchase more stocks in the Australian Shares (ASX100) Option with my dividends?
Dividends and associated franking credits will not automatically be reinvested back into the Australian Shares (ASX100) Option. All dividends and franking credits will be paid back into your superannuation account and applied as per your Member Investment Choice instructions for future investments.

14. Do I need to declare dividends in my tax return?
No, as these dividends are earned as part of your superannuation and therefore do not need to be declared as part of your income.

15. What is an ex dividend date?
The date when a dividend has been declared by the company.

16. What is Capital Gains Tax?
It is a tax that is levied on the profit or gain from the disposal of assets.

17. How is Capital Gains Tax calculated?
All capital losses will attract a tax credit of 10%, regardless of the holding period. Stocks sold within 12 months of purchase that result in a gain will be taxed at a rate of 15%. Stocks sold more than 12 months after purchase and resulting in a gain are taxed at a rate of 10% (the tax rate is actually 15%, but you are entitled to a discount of 33 1/3% discount, which effectively gives you an overall tax rate of 10%.

18. Do I have to include Capital Gains Tax on my Tax return?
No, the Capital Gains Tax only affects your superannuation earnings.

19. What does it mean when a stock has been suspended?
Trading in any stock can be suspended at the discretion of the Australian Stock Exchange (ASX). A suspension means that there will be no trading of the stock until the ASX grants permission for the stock to resume trading again.

20. What is a Franking Credit?
A franking (or imputation) credit is a tax credit passed on to a shareholder. Because the maximum tax applicable within a superannuation environment is 15%, any dividends that have been taxed at a rate higher than 15% by the issuing company will return an associated franking credit to the member. The franking credit is the difference between the 15% that applies within a superannuation fund and the 30% tax that was paid by the company.

21. What is a Franking Dividend?
A dividend paid with an imputation credit attached.

22. What happens to my buy/sell request if a stock is suspended?
If suspension of trading occurs on any stock then your buy/sell order will not be processed until the next trading date. If trading in the selected stock cannot be performed at the next trading date the order will be cancelled and you will be notified by mail of the cancellation of your order.

You will be required to resubmit your order, which will be processed on the next trading day if you wish to continue with your trade.