Commonwealth Government Security Buyback Facility
Investors are able to sell their holdings of Commonwealth Government Securities back to the Australian Government via the Commonwealth Government Security Buyback Facility (Buyback Facility). The Buyback Facility is operated by Computershare Investor Services on behalf of the Australian Government.
Investors will be able to sell their holdings of Treasury Bonds, Treasury Indexed Bonds or Tax-Free Stock. Treasury Bonds or Treasury Indexed Bonds will be bought back in $1,000 face value increments with a minimum amount of $1,000 face value. Investors will not be charged a fee to utilise the Buyback Facility.
Investors will receive a market price for any bond sold through the Buyback Facility. Prices are set each business day (Sydney business day convention) around midday based on prevailing mid-rate prices in the secondary wholesale market. The price data is sourced from the Yieldbroker DEBTS system which is a major electronic trading platform for fixed income securities in the Australian and New Zealand financial markets. The prices set each day will apply to all buyback transactions that are successfully processed on that day. Prices are provided on a 'T' basis; that is, the price offered to investors will include accrued interest up until the date when the transaction is processed. The price offered to investors on bonds that are ex-interest (that is, seven calendar days before the coupon payment date) will reflect the fact that the investor is entitled to receive the coupon payment on the bond.
Further information about the pricing formulae for Treasury Bonds and Treasury Indexed Bonds is available on the Pricing Formulae for Commonwelath Government Securities page. Information Memoranda for Treasury Bonds and Treasury Indexed Bonds can be found on the Information Memoranda page.
How to complete
In order to sell Commonwealth Government Securities back to the Australian Government, investors must complete then submit via mail a Buyback form [PDF 189KB] to Computershare. Buyback forms that are incomplete or do not contain the necessary supporting documentation will not be processed by Computershare.
The proceeds from the sale of holdings will be distributed to investors within three business days of the receipt of the Buyback form. Proceeds will be paid to investors in accordance with their current payment instructions held by the Registrar.
Information on this website regarding the Commonwealth Government Securities Buyback Facility does not constitute investment advice. Representatives of the Australian Government or Computershare are unable to provide investment advice. Investors should obtain independent financial advice before selling Commonwealth Government Securities. It is possible for capital gains or losses to be made if Commonwealth Government Securities are sold prior to maturity.