Linkmarketservices settlement account vs Commsec account

This is probably a basic question but I'll ask it anyway......

Share dividends are due to be paid out and we don't want them to be reinvested as DRP, etc. The money paid from the dividends needs to go to pay down the non-deductable loan on PPOR. Can we set the settlement account in Link Market Services to the offset linked to the non-deductable loan attached to the PPOR, and have the Commsec settlement account to be the CDIA (for future share purchases from a deductable loan).

I guess this would be ok as they are to separate companies/platforms? (wanting to know this as part of a debt reduction strategy)

 

Are the shares issuer sponsored (link) or broker sponsored (comsec)? You cant be both. Check what letter the shareholder number starts with.

 

The HIN starts with an X

 

I don't know what set up you have for any shares you may hold but as you probably know Link Market Services is a share registry which a number of companies use to maintain the details of their share holders. The companies select the share registry to use. You don't.

If you have a number of different companies which are on that share register, you can, as I have done, direct payment to different bank accounts. Obviously the bank details for direct deposit of the dividends has to be a valid one, i.e. BSB, Account Number, etc.

Whether offset or whatever rather than a plain vanilla bank account is allowable is best asked of the share register I think. The won't give you tax or any other advice beyond their charter as they are not allowed to do so but there is no harm in asking the registry if XYZ is a valid account for the payment of dividends. They are pretty good with those sorts of administrative details.

As to whether you should do what you want to do is likely to be best asked of your accountant or tax specialist.

 

OK, I'll try to be more clearer....

The shares were purchased through the commsec broking platform and were paid through the linked CDIA from funds from a deductable loan. Dividends will be due soon and they need to be taken as cash payment (rather than reinvestment) for debt recycling into the offset attached to the non deductable loan on the PPOR. The letter that arrived in the mail has said:
"Your CHESS sponsor (broker, ie Commsec) has requested Link Market Services Ltd to amend your bank account details. Please check the amended details carefully...", etc....
The bank details on this form show the CDIA where the funds where used to purchase the shares from. However the dividends need to be placed into the offset linked to the non-deductable loan (ie where all salaries, etc go into).

The question is, can the account listed by LINK be changed to the offset account linked to the non- deducable loan, without it affecting the settlement loan used to purchase the shares through commsec?
Simply...we want the share purchases to come from CDIA, and dividends to be paid into a separate offset......

 

OK. I suspect you may not have created an investor account with Link Market Services. Try that first. It's no big deal and easy to do.

Link Market Services

That provides you with the opportunity to ensure you bank details, TFN, address details are correct and change if necessary.

I very much doubt whether Commsec will alter your bank details as the assumption will be you are automatically directing the dividends to the account your broker (Commsec) to withdraw or deposit any share trades.

 

Commsec often assign the CDIA by default as the account for crediting divs. You can register and maintain each Chess holding with the respective registry (Computershare /Link/Boardroom etc) and assign a bank account. And ensure the TFN is quoted !! Commsec tend to be slow on that and withholding can bite. Worst case you can do as YMan suggests and move the $$$