Quote Originally Posted by RRR View Post
Interesting. How can they do that since the income/dividend is not realised at the time - of course we will be declaring the DRP dividends at the time of IT return. What if there is no money left in the Australian $ account? I usually keep a few hundred $ in the account, but will aim to keep it close to zero from now on.
If you don't have any funds in your Australian CM account then ASB will simply transfer fees from your NZ Cash Management Account. I asked about the possibility of just paying the withholding tax in NZ, seeing that it is a NZ charge, but ASB said it had to go to Australia. So I guess I have no alternative but to pay fx fees as well! With that in mind I'm now keeping sufficient funds in my Australian CM account to cover the withholding tax deductions.