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TERMS AND CONDITIONS
The Terms and Conditions of Designated Investments in Queensland Bonds are as follows:
Issuer
Queensland Treasury Corporation (QTC) is the issuer of Queensland Bonds. The Queensland Bonds will be issued as inscribed stock of QTC, and are subject to the provisions of the Queensland Treasury Corporation Act (Queensland) Act 1988 (the Act) and the Queensland Treasury Corporation Regulation 1999.
Interest
The interest rate is determined by QTC having regard to prevailing market rates on the date of receipt of the full amount of the investment funds. The interest rate applicable remains fixed for the term of the investment. Interest is calculated on the basis of a 365 day year.
Payment dates
(a) The first payment of interest shall be six calendar months from and including the date of receipt of the full amount of the investment funds, such date to be the effective date for the commencement of the investment and each subsequent payment of interest will be every six calendar months thereafter up to and including maturity of the Queensland Bonds.
(b) Where the due date for the payment of interest or the repayment of principal falls on a day, which is not a business day, then the holder of the Queensland Bonds will not be entitled to a payment until the next business day. In such cases, the holder of the Bonds will not be entitled to any additional interest or other payments. A ‘business day’ means a day on which banks are open for general banking business in Brisbane, Queensland. The principal on the Queensland Bonds will only be paid on the final maturity date. This date will be set out in the Certificate of Inscription.
Interest payment and redemption of the Bonds
If no alternative directions are received, interest payments and principal repayments will be paid by cheque and posted to the address of the holder of the Queensland Bonds shown on the register. Payments may be made directly to an Australian bank, building society or credit union. A direction to alter payment instructions must be received at least 15 days prior to the date of payment.
Guarantee
The Government of Queensland guarantees the payment of interest and the repayment of principal at maturity, under the Act.
Applications
Applications should be made in accordance with the procedures set out in section ‘How to invest’ in the QTC Designated Investments application form.
Subscription terms
Applications will not be processed through to the relevant authorities until such time as the full amount of the investment funds has been received.
Ownership
A Certificate of Inscription will only be issued upon receipt of investment funds and original documentation. A Certificate of Inscription is provided as a matter of courtesy only and has no legal effect. Specifically, it does not confer any title to the Queensland Bond. The owner of the Queensland Bonds will be the person recorded in the inscribed stock register as the owner of the Queensland Bonds. Queensland Bonds are non-transferable and non-redeemable. The Minister for Immigration, Multicultural and Indigenous Affairs may cancel any visas held by you and members of your family if the funds are withdrawn from the Designated Investment before the date of maturity. This means that the Queensland Bonds are not capable of being sold or transferred to another person or sold back to QTC.
Tax File Numbers/overseas residents
You are not required by law to provide your Tax File Number (TFN) or exemption details. However, if you choose not to provide your TFN or exemption details, QTC will be obliged to deduct tax at the highest marginal rate plus Medicare levy. If you choose to provide these details, you should provide QTC with your TFN and the details of any type of exemption applicable to you. If you are not required to lodge a tax return, please explain why.
1. QTC will not gross up any payments, in the event that QTC deducts tax directly from the interest payable on your Bonds.
2. If you are unsure whether or not you are exempt from quoting a TFN, please contact the Australian Taxation Office (www.ato.gov.au or phone 132 861 from within Australia or 61 2 6216 1111 from outside Australia) and request publication number ‘NAT 1628’. Australia has an interest withholding tax regime. QTC strongly recommends that investors seek independent professional Australian tax advice or contact the Australian Taxation Office prior to purchasing the bonds.
3. Interest payable to non-resident investors may be subject to withholding tax.
Amendment
QTC shall be entitled to amend any of these Terms and Conditions from time to time at its sole and unfettered discretion and you will be bound by all future amendments, whether or not you consent to the amendment.
Substitution
QTC may, at any time, without the consent of the holders of Queensland Bonds, transfer its rights and obligations under Queensland Bonds to either a statutory body constituted by an Act of the State of Queensland (which represents the State of Queensland), the State of Queensland or another entity (if the obligations so transferred continue to be guaranteed by the Treasurer of Queensland) or the Crown in the right of the State of Queensland.
Brokerage
QTC does not pay brokerage on Queensland Bonds.
Goods and Services Tax (GST)
In the event that GST is payable by QTC due to any supplies made by QTC in respect of Queensland Bonds, QTC reserves the right to demand payment from an investor of an amount required to cover the GST liability of QTC.
Joint holders of Queensland Bonds
If you are applying or holding Queensland Bonds jointly, then the following will apply:
(a) The Terms and Conditions will bind each of you severally and jointly.
(b) You acknowledge that in the event that if one of you dies, the Terms and Conditions are deemed to remain in operation in respect of the surviving joint holder(s).
(c) QTC will only treat any communication from you as valid if it is signed by all of you.
(d) Payment of interest and principal in accordance with these Terms and Conditions will discharge QTC’s liability in full in respect of the Queensland Bonds held jointly by you despite the fact that any one of you might not have received any interest or principal from any other joint holder.
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