What is an in-specie transfer?

You may have seen the term ‘in-specie transfer’ and wondered what it means. Put simply, in-specie transfers, often processed as off-market transfers, allows Australian investors to move shares or ETFs between different investing platforms, or broker to broker, without selling or incurring CGT.  

Here, we break down exactly what they are and how they work. 

An in-specie transfer is the movement of assets, from one account to another without selling them or converting them to cash first.  For example, an investor wanting to transfer their ETF holdings from one investment platform to another without selling them first. 

An in-specie transfer does not require you to sell any holdings. Where there is no change in beneficial ownership, the transfer of holdings from one provider to another will generally not trigger a CGT event. We recommend you obtain independent professional taxation advice to confirm the taxation implications of transferring your holdings. 

Betashares Direct makes the in-specie transfer process very simple. With the Betashares Direct digital process, it takes less than five minutes to submit the portfolio transfer request if you have the required information at hand.  

Before you start, make sure you have:   

• details of your other account/s that you’ll be transferring your holdings from 
• details of the holdings to be transferred, including ASX code, the quantity you want to transfer and (if available) the cost price and purchase date of the relevant holdings 
• the photo ID for each account holder. 

Once you have the information ready, the in-specie transfer process consists of 4 easy steps: 

1. Enter your account info: select your broker and enter identification details  
2. Select your securities: use our template to simplify bulk transfers  
3. Upload your ID and signature: scan a QR code to take a photo on your phone 
4. Submit: we do the rest  

Holdings will generally be transferred to your Betashares Direct account within 7 business days of submitting your transfer request. Transfer times can vary, particularly where there are issues or delays with the provider you are transferring from. 

With other providers, in-specie transfers typically involve far more time and paperwork. 

In some cases, you may need to print and manually complete an off-market transfer form, check that your registration details match across both brokers, list the holdings you want to transfer, and then email or post the form to your current provider. 

For more information, please refer to our FAQs. 

It is possible. Betashares Direct uses the custodian model and we accept transfers from all major brokers and platforms, whether your shares are CHESS-sponsored (held under a HIN) or issuer-sponsored. Your shares move across and you stay the beneficial owner throughout.  

With the custodian model, your investments are held by an independent custodian (Citigroup), not Betashares. You keep the rights to all your dividends and distributions, and you have the sole right to sell. No HIN is needed because Betashares handles the registry admin for you. 
 
See the benefits of custodian investment model.  

It won’t, and you won’t lose your cost base or parcel history. You can upload your cost base in bulk via CSV, or import your broker export, then adjust it any time afterwards. 

There are multiple benefits of making an in-specie transfer to Betashares Direct:  

• Consolidate your entire portfolio of ETFs and shares in one place. 
• Get streamlined tax reporting – at the end of the financial year, you’ll get a personalised tax statement covering all your Betashares Direct investments. If you sold any investments during the financial year, you’ll get a statement showing your capital gains and losses. 
• Other helpful features and tools: access to ETFs and shares, zero brokerage on buys and sells, auto invest, fractional investing, portfolios and a simple and intuitive app.

Refer to the Product Disclosure Statement, available at www.betashares.com.au/direct, for information on interest retained by Betashares on cash balances.

We do not charge a fee to transfer holdings into your Betashares Direct account from another provider. However, your other account provider may charge fees – be sure to check before you submit the transfer request.  

Worried about switching because your platform charges a fee per holding? Moving now could still cost less than moving laterr. Some brokers charge brokerage fees when you sell, and in some cases that fee is based on a percentage of your holding’s value. That means the larger your investment grows, the more it may cost to transfer. Certain Australian platforms charge up to 0.12% to sell. Betashares Direct charges $0 brokerage when you sell. 

Betashares Direct charges a fee of $9.50 per security to transfer your investments out of your Betashares Direct account to another account in your name. Such a request will need to be initiated with the provider of your other account.