Transacting Brokers Instructions

1. Introduction

ShareGift Australia is a not for profit organisation that provides shareholders with an easy and tax deductible way to sell and donate small parcels of shares that would otherwise be difficult and expensive to trade. ShareGift Australia donates the cash proceeds to Australian charities with Deductible Gift Recipient (DGR) status.

This manual has been prepared by ShareGift Australia. It aims to assist ABC Broker in understanding the procedures associated with donations to ShareGift Australia resulting from the sale of shares.

2. Donation Forms

ABC Broker will receive donation forms directly from its clients. These forms represent a request by the client to sell securities and donate the proceeds to ShareGift Australia.

It is important to ensure that the form has been completed correctly by the client. A comparison can be made to the sample provided on page 6 of this document.

Electronic copies of the donation form can be obtained from the ShareGift Australia website  www.sharegiftaustralia.org.au.

3.   Confirmation of Holdings

Prior to the sale of the securities, the holding should be confirmed.

3.1 If Broker Sponsored by ABC broker:

• The holding should be confirmed in your internal records.

3.2 If Issuer Sponsored:

• The holding should be confirmed via the registry prior to sale utilising the Shareholder Reference Number supplied on the Donation Form.

3.3 For external Broker Sponsored Holdings

For any non ABC Broker Sponsored holdings please send the original donation form/s directly to ShareGift, Level 15, 101 Collins Street, Melbourne Vic 3000. ShareGift will send a letter to the sponsoring broker requesting a conversion. The shareholder will then receive an Issuer Sponsored statement from the Share Registry and should return this to ShareGift to place the order. This procedure can be reviewed in due course.

Upon confirmation of the holding, the sale order can be placed.

4.   Sale Orders

4.1   For ABC BrokerBroker Sponsored Clients

A sale order should be placed on the broker sponsored client’s account to be executed in the normal manner. The client needs to receive a contract note just as they would for other transactions.

4.2   For Issuer Sponsored Holdings

It is recommended that the most efficient way to manage the sale of Issuer sponsored holdings is via the use of an account in the name of ShareGift Australia. This allows for the bulking of multiple sales in the one security.

It is important for all Brokers who use a ShareGift Australia account to follow appropriate compliance procedures by sending copies of Contract Notes to the end client. Your internal system for facilitation of ShareGift needs to be signed off by your Compliance Office from a regulatory perspective which includes AML requirements.

It is important that you inform your Settlements team not to pay the proceeds to the client. Your client has instructed you to pay the proceeds to ShareGift Australia for donation.

The banking details for ShareGift Australia are:

BSB: 083 973
Account number: 000633458

5. Recording Transactional Details

At the time of each sale, a spreadsheet must be completed with details of the transaction. This spreadsheet must be emailed to ShareGift Australia at info@sharegiftaustralia.org.au who will then issue a letter to your client that will serve as a receipt for taxation purposes.

You can see a sample of a spreadsheet here.

 

6.   Reimbursement of ASX fees

The ASX has kindly offered to recompense brokers for their ITS and CHESS costs. To be able to claim these, the bottom of the ShareGift Australia donation form needs to be completed. Please see a sample of the ‘Office Use Only’ section where you will need to complete the details of the transaction in order for reimbursement to occur. Note, both JBWere and Macquarie have elected not to seek recompense.  

You should scan the donation forms and email them to ShareGift Australia at info@sharegiftaustralia.org.au with this section completed. ShareGift Australia will on‑send the forms to the ASX to ensure processing of the reimbursement.

When you receive the reimbursement on your ITS and CHESS invoices, the descriptions and value will look like those shown immediately below.

Invoice Description	Value
ShareGift Reimbursement: Trade Fee	0.28 BPS
ShareGift Reimbursement: Crossing Clearing Fee	0.05 BPS
ShareGift Reimbursement: Transaction Clearing Fee	0.25 BPS
ShareGift Reimbursement: Off market Cross Trade Fee	0.08 BPS
ShareGift Reimbursement: On market Cross Trade Fee	0.15 BPS
ShareGift Reimbursement: CHESS and Sub register Transfer and Conversion Fee	$0.90*

*Please note that these fees do not include GST.

7. Support

A Help Line has been provided by ShareGift Australia to assist with questions in relation to the donation process. Enquiries should be directed to:

Andrea Broom
Executive Officer, ShareGift Australia
Phone: 1300 731 632
Email: Andrea.Broom@sharegiftaustralia.org.au