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Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings

Listed securities

Listed securities, including derivative investments and foreign shareholdings, are listed on a stock exchange. They are financial assets for deeming purposes, regardless of whether:

  • they are held in Australia or overseas, and
  • dividends are paid or not.

The following table contains the listed securities that are included for deeming purposes:

Listed Security

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General listed securities:

  • ordinary shares,
  • preference shares,
  • partly paid or contributing shares,
  • deferred dividend shares,
  • convertible notes, non-convertible notes and capital notes, and
  • company options.

Listed Securities    

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Derivative investments:

  • rights,
  • exchange traded options and futures,
  • warrants and endowment warrants, and
  • share ratio contracts.

Derivative Investments    

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Foreign shareholdings and exempt stock markets:

  • shares listed on foreign stock exchanges, and
  • shares traded in an exempt stock market.

Foreign Shareholdings

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According to section 5J(1) of the VEA a financial asset means;


Australia is defined in the Acts Interpretations Act 1901 and includes the following territories and Islands:

  • Christmas Island
  • Cocos (Keeling) Islands

Subsection 5Q(1) of the VEA provides specifically that the definition of Australia includes the external territories for many VEA purposes including Part III, IIIAB, some parts of Part IIIB, Parts IIID, VIIA, VIIC and sections 52ZO, 58A, and 132.  Norfolk Island is currently the only external territory of Australia. For the above VEA sections, which cover service pension, [glossary:income support supplement:118], pension bonus, pension loans scheme, Veterans supplement, pension supplement and Commonwealth Seniors Health Card purposes it is considered to be part of Australia. The test of residing in Australia does not by itself satisfy the full definition of Australian Resident, as residency also requires Australian citizenship or the holding of a specified visa.

Papua New Guinea and Nauru have both previously been external territories of Australia.  Lord Howe Island and Macquarie Island, formerly regarded as separate islands, are now part of mainland NSW and Tasmania respectively.