NAB Capital Notes

On 23 March 2020, all NAB Capital Notes were mandatorily purchased for $100 per NAB Capital Note and a final distribution constiting of a cash payment of $0.7718 per NAB Capital Note was paid to holders on the record date for the final distribution.

Once all NAB Capital Notes were mandatorily purchased, $750 million of NAB Capital Notes were converted into NAB ordinary shares, with the balance redeemed by NAB. The issue price of the ordinary shares issued on conversion was based on 0.6% discount to the volume weighted average price of NAB ordinary shares over certain days between 17 February 2020 and 20 March 2020.

On 23 March 2020, $750 million of NAB Capital Notes were converted into NAB ordinary shares, with the balance redeemed by NAB. The issue price of ordinary shares issued on conversion of the NAB Capital Notes was based on 0.6% discount to the volume weighted average price of NAB ordinary shares over certain days between 17 February 2020 and 20 March 2020.

Australian resident holders must include any cash distributions paid on the NAB Capital Notes in their Australian taxable income.

The cash component may also be franked under Australia's dividend imputation system. Any franking credits attached to the distribution will normally also form part of an Australian resident investor’s taxable income. However, they're generally entitled to a rebate of tax for the franking credits attached to the dividend.

In some circumstances, Australian resident individuals may be entitled to a refund from the Australian Taxation Office for any excess franking credits (eg. if their taxable income is too low to make them liable to tax, or the franking credits exceed their overall tax liability).

Australian resident holders must include any cash distributions paid on the NAB Capital Notes in their Australian taxable income.

The cash component may also be franked under Australia's dividend imputation system. Any franking credits attached to the distribution will normally also form part of an Australian resident investor’s taxable income. However, they're generally entitled to a rebate of tax for the franking credits attached to the dividend.

In some circumstances, Australian resident individuals may be entitled to a refund from the Australian Taxation Office for any excess franking credits (eg. if their taxable income is too low to make them liable to tax, or the franking credits exceed their overall tax liability).

Distributions on the NAB Capital Notes should be disclosed in your Australian income tax return as franked dividends.

No. The relevant information that NAB Capital Notes holders require for tax purposes is contained in the quarterly distribution statements provided to NAB Capital Notes holders. The relevant quarterly distribution statements are also readily available from our Share Registry’s website www.investorcentre.com/au.

Yes, NAB has obtained a class ruling which outlines the tax implications for investors in detail. View the ATO Class Ruling (PDF, 208KB).