# CHESS Holding Statements from the ASX



## Panaman (30 August 2014)

I keep getting these sent to me each time a buy or sell or dividend is reinvested, what for , accountant isn’t interested in them for tax returns ive just discovered as all the information he needs is on the Dividend advice or the buy or sell contract notes.

Should I or do I need to keep them or is it safe just to bin them? Seems a huge waste of paper to me


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## rimtas (30 August 2014)

Keep them until you hold the stock, after selling just throw them out.. Agree, waste of paper....and the labour hours needed to prepare, pack and send all those letters. When I used to live and trade in Europe, I have never ever got any letter from anyone, the trading platform had all historical information I needed for tax statements. And dividends were automatically credited to trading account.


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## pixel (30 August 2014)

Panaman said:


> I keep getting these sent to me each time a buy or sell or dividend is reinvested, what for , accountant isn’t interested in them for tax returns ive just discovered as all the information he needs is on the Dividend advice or the buy or sell contract notes.
> 
> Should I or do I need to keep them or is it safe just to bin them? Seems a huge waste of paper to me




I'm not sure if they're needed for anything - provided you have the contract notes on your computer and backed up for the required time. 
However, I've been putting them in a big box - one per year - and smile at the thought of some tax auditors asking for detailed proof of my transactions. After 7 years, they can definitely be discarded ... *BUT: Be aware that your HIN will be shown on those paper records.* Therefore, make sure you shred them or use them as fire lighters in the fireplace or BBQ. (I shred them and donate the strips to our local pet shop for kitten or pup bedding.)


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## rb250660 (31 August 2014)

I've sold my shares before they and the rest of the other junk arrives in the mail so I hand it all into the orange shred-x wheelie bin at work.


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## skc (31 August 2014)

pixel said:


> I'm not sure if they're needed for anything - provided you have the contract notes on your computer and backed up for the required time.




Contract note is about buy and sell with your broker. CHESS statements is about settled holdings in your name. 99.9% of the time, trades and settlements are working perfectly and your contract notes and CHESS statements contain the same information. But I do keep both sets of paper for 7 years as per tax rule just in case somethign goes wrong.

In some situations... e.g. you BPay for a SPP (Share Purchase Plan) you may not get a contract note. In that case your CHESS statement assures you that you are the legal holder of the stock... in case your broker's computer goes haywire or something like that.


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## Julia (1 September 2014)

skc said:


> Contract note is about buy and sell with your broker. CHESS statements is about settled holdings in your name. 99.9% of the time, trades and settlements are working perfectly and your contract notes and CHESS statements contain the same information. But I do keep both sets of paper for 7 years as per tax rule just in case somethign goes wrong.



I do also.  Not that hard and good to have backup.


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## McLovin (1 September 2014)

rimtas said:


> Keep them until you hold the stock, after selling just throw them out.. Agree, waste of paper....and the labour hours needed to prepare, pack and send all those letters.




I doubt those letters are manually prepared and packed. 

I keep all mine. Just in case something ever happened.


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## Craton (1 September 2014)

Panaman said:


> I keep getting these sent to me each time a buy or sell or dividend is reinvested, what for , accountant isn’t interested in them for tax returns ive just discovered as all the information he needs is on the Dividend advice or the buy or sell contract notes.
> 
> Should I or do I need to keep them or is it safe just to bin them? Seems a huge waste of paper to me




Stating the obvious but nonetheless.

Chess statements have replaced the old Share Certificate that proved you are the owner of X number of shares as per that company's share register. If you weren't CHESS sponsored you'd get an Issuer Sponsored bit of paper. 

The accountant might not need them but you do to prove you are the legal owner of any shares bought, reinvested, have options in, etc and are also proof of disposal of a holding. PITA in know but record management is a part of life whether one trades shares or not.

From here: http://www.asx.com.au/documents/research/chess_brochure.pdf



> If you buy or sell financial products such as shares in
> a listed company, you must exchange the title or legal
> ownership of those financial products for money. This
> exchange is called settlement.
> ...




So yeah, keep 'em and dispose in seven years time.


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## McLovin (2 September 2014)

Craton said:


> Stating the obvious but nonetheless.
> 
> Chess statements have replaced the old Share Certificate that proved you are the owner of X number of shares as per that company's share register. If you weren't CHESS sponsored you'd get an Issuer Sponsored bit of paper.
> 
> ...




If you're keeping them as proof of ownership (which is the only reason I do), then wouldn't you hold onto them for either seven years or until you sell, whichever length is longer?


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## qldfrog (3 September 2014)

any explanation as to 7 years?
I thought the ATO was requesting 5 years only?
I clear  all my broker/chess papers after 5y am i wrong?


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## ROE (3 September 2014)

5 Years .. 7 is the old rule

https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3


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## skc (4 September 2014)

ROE said:


> 5 Years .. 7 is the old rule
> 
> https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3




https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3

Only for people with "simple" tax affairs.



> your income consists only of
> 
> salary or wages (other than from associates)
> interest paid by a financial institution or government body
> dividends from an Australian company listed on the Australian Stock Exchange (ASX)




That seems to suggest that if you have investment properties or capital gains, the 7 year rule still applies?


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## ROE (4 September 2014)

skc said:


> https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3
> 
> Only for people with "simple" tax affairs.
> 
> ...




Still 5 years, simple tax return applied to this

Shorter retention from 2004–05 on
We have made a determination SDR 2006/1External Link that some records for 2004–05 and later income years held by individuals with simple tax affairs need only be retained for two years. The records that are covered by this determination are a:


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## skc (4 September 2014)

ROE said:


> Still 5 years, simple tax return applied to this
> 
> Shorter retention from 2004–05 on
> We have made a determination SDR 2006/1External Link that some records for 2004–05 and later income years held by individuals with simple tax affairs need only be retained for two years. The records that are covered by this determination are a:




Oh thanks... I should learn to read things properly!

Althought I must confess... reading the ATO website is like reading a book written in French and translated into Chinese by a Russian lawyer when I can only read English! 

And the book is poorly written.


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## qldfrog (6 September 2014)

I appreciate the confirmation, so will keep everything for 5 years


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## ROE (6 September 2014)

McLovin said:


> If you're keeping them as proof of ownership (which is the only reason I do), then wouldn't you hold onto them for either seven years or until you sell, whichever length is longer?




I wish they could do it in electronic form, I get a stack of them fairly often and it is a waste of paper and most of the time I put  them in the shredder.


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## ROE (6 September 2014)

qldfrog said:


> I appreciate the confirmation, so will keep everything for 5 years




You dont need chess holding statement for tax purposes, only buy and sell contracts and dividend statement


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## SuperGlue (6 September 2014)

ROE said:


> I wish they could do it in electronic form, I get a stack of them fairly often and it is a waste of paper and most of the time I put  them in the shredder.




I wish the same too.

But then think about the negative side, unemployment.
Timber industry, paper milling, transport, printing, Australia Post, shredding, rubbish collector and paper recycling will be out of work, well just a bit more unemployment.

Prime example Australia Post.

There are as many positives too.


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## SuperGlue (6 September 2014)

Oh dear..... shredded my past tax documents 3 weeks ago, read on ATO website
5 years was sufficient.
Today did more digging and found the following.
Good thing I don't have SMSF.

Record keeping for SMSF:
For some documents have to keep record for 5 years and other documents for 10 years.

https://www.ato.gov.au/Super/Self-m...-administration-/Record-keeping-requirements/


Record keeping with depreciating assets have a longer keeping period.

https://www.ato.gov.au/Individuals/...-keep/How-long-you-need-to-keep-your-records/


Please DYOR.


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