MEMORANDUM OF UNDERSTANDING REGARDING THE AGREEMENT BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 

GOVERNMENT OF AUSTRALIA TO IMPROVE INTERNATIONAL TAX COMPLIANCE 

ANDTOIMPLEMENTFATCA 

At the signing today of the Agreement between the Government of the United States of America 

and the Government of Australia for Cooperation to Facilitate the Implementation ofFATCA 

(hereinafter the "Agreement"), the representatives of the United States of America and of 

Australia have reached the following understanding concerning the Agreement: 

1. It is understood that, in the case of securities registered in an Australian securities 

clearing and settlement facility operated by a CS facility licensee as defmed in the 

Corporations Act 2001 that are held by or through one or more other Financial 

Institutions, the relevant Financial Accounts are to be treated as held by such other 

Financial Institutions, and such other Financial Institutions are to be responsible for any 

reporting with respect to such Financial Accounts. Notwithstanding the foregoing, in 

accordance with paragraph 3 of Article 5 of the Agreement, the CS facility licensee may 

report on behalf of such other Financial Institutions. 

2. The United States understands that Australia plans to present the Agreement to its 

parliament for its approval in 2014 and to propose implementing legislation with the goal 

of having the Agreement enter into force by September 30, 2015. Based on this 

understanding, as of the date of signature of the Agreement, the United States 

Department of the Treasury intends to treat each Australian Financial Institution, as that 

term is defined in the Agreement, as complying with, and not subject to withholding 

under, section 1471 ofthe U.S. Internal Revenue Code during such time as Australia is 

pursuing the necessary internal procedures for entry into force of the Agreement. The 

United States further understands that the Australian Department of the Treasury intends 

to contact the United States Department of the Treasury as soon as it is aware that there 

might be a delay in the Australian internal approval process for entry into force of the 

Agreement such that Australia would not be able to provide its notification under 

paragraph 1 of Article 10 of the Agreement prior to September 30, 2015. If upon 

consultation with Australia, the United States Department of the Treasury receives 

credible assurances that such a delay is likely to be resolved in a reasonable period of 

time, the United States Department of the Treasury may decide to continue to apply 

FA TCA to Australian Financial Institutions in the manner described above as long as the 

United States Department of the Treasury assesses that Australia is likely to be able to 

send its notification under paragraph 1 of Article 10 by September 30, 2016. It is 
understood that should the Agreement enter into force after September 30, 2015, any 

information that would have been reportable under the Agreement thereafter (and prior to 

its entry into force) had the Agreement been in force by September 30, 2015, is owed on 

the September 30 next following the date of entry into force. 

3. It is understood that a not-for-profit entity exempt from Australian income tax under 

Division 50 of the Income Tax Assessment Act I 997 is to be treated as an NFFE that 

satisfies clause B.4.j) of Section VI of Annex I. 

4. It is understood that any office in Australia of the Asian Development Bank, the 

Commission for the Conservation of Antarctic Marine Living Resources, the 

Commission for the Conservation of Southern Bluefin Tuna, the European Investment 

Bank, the Institute for Democracy and Electoral Assistance, the International Committee 

of the Red Cross, the International Organization for Migration, the Pacific Islands Trade 

and Investment Commission, the Secretariat to the Meeting of the Parties to the 

Agreement on the Conservation of Albatrosses and Petrels, the United Nations, the World 

Bank Group, or of any organization or other body to which the International 

Organisations (Privileges and Immunities) Act I 963 applies, is to be treated as an 

international organization that satisfies paragraph B of Section I of Annex II. 

Signed at __ n_ _r \,.).._ _· _ _ _ _ , in duplicate, on l+pr; I ;._ ~, J. 0 I ~ 

For the Government of the 

United States of America: 

For the Government of 

Australia: