This article explains the differences between Stockspot’s and Raiz’s investment structures following Raiz’s announcement about historical tax withholding and reporting issues on 13 October 2026.
The issues announced by Raiz don’t affect Stockspot clients. For Stockspot investment accounts, your ETFs are held in your name under your own Holder Identification Number (HIN). Your tax file number (TFN), when provided, is passed directly to the relevant ETF registries.
This means tax withholding on your ETF distributions is administered by the registries on behalf of the ETF issuers. Stockspot doesn’t pool your ETF holdings with other clients and then distribute the income through a Stockspot fund.
What Raiz has announced
Raiz says a review identified historical failures to apply TFN and Australian Business Number (ABN) withholding and lodge related reports with the Australian Taxation Office (ATO). The matters date back to the establishment of its funds in 2015.
These rules generally require tax to be withheld from certain investment payments when an investor hasn’t quoted a TFN or an eligible ABN, or claimed an applicable exemption.
Raiz has notified the ATO and ASIC and begun a remediation program. Its review is continuing. It hasn’t yet determined whether customers will face any financial, tax or reporting consequences.
How Stockspot’s structure differs
With a Stockspot investment account, you own the ETF units directly. Your account has its own HIN and the ETFs in your portfolio are registered under that HIN. Your holdings are separate from those of other Stockspot clients.
Each ETF registry keeps the ownership and tax records for the relevant ETF. When you provide your TFN to Stockspot, it’s passed to the relevant registries for your holdings. The registries administer any required withholding on distributions on behalf of the ETF issuers.
Raiz uses a pooled investment structure. Its underlying ETF units are held through a custodian on behalf of investors. Individual customers aren’t registered as the direct owners of those ETF units under their own HINs.
That adds a layer between the customer and the ETF registry. Customer withholding and reporting obligations need to be handled within the Raiz fund structure. The ETF registry can’t administer those obligations for each underlying customer as it does for a direct ETF holder.
This helps explain why the responsibilities differ.
What this means for Stockspot clients
You don’t need to take any action with your Stockspot account because of Raiz’s announcement. Your ETF holdings and the way your TFN is provided to the registries are unchanged and unaffected.
Frequently asked questions
Could Raiz clients have a tax liability they don’t know about?
We don’t know. Raiz says it hasn’t yet determined whether customers may face financial, tax or reporting consequences. Its announcement doesn’t establish that individual customers owe additional tax.
A failure to withhold tax and a customer’s final tax liability are separate matters. The outcome will depend on the review and each customer’s circumstances.
If you’re a Raiz client and have any questions or concerns, contact Raiz directly. Your accountant can also help you understand your own tax position.
Has Raiz said customer money is missing?
No. Raiz says customer funds remain secure and are held by independent custodians. Its announcement concerns historical tax withholding and reporting.
It says customers don’t need to take any action at this time and that it’ll contact affected customers if its review identifies any.
Does providing my TFN mean I won’t owe tax?
No. Quoting your TFN generally avoids withholding that applies when a TFN hasn’t been quoted. It doesn’t make your investment income tax free.
You still need to include relevant income and capital gains in your tax return.
What if I haven’t provided my TFN to Stockspot?
Providing your TFN is optional. If a valid TFN or applicable exemption hasn’t been recorded, the ETF issuer may need to withhold tax from relevant distributions through its registry.
Contact our client care team if you’d like help checking your details.
Does every ETF in my portfolio have a different HIN?
No. Your Stockspot investment account has its own HIN. The different ETFs in that account are held under that HIN. Your account is separate from other clients’ accounts.
Does this explanation also apply to superannuation?
The individual HIN structure described here applies to Stockspot investment accounts, including investments held by self managed super funds.
Stockspot Super and Pension operate through Super Simplifier and have a different ownership structure.
Raiz has separately confirmed that members of the Raiz Invest Super Fund aren’t affected by the tax matters it announced.
Information is based on Raiz’s announcement dated 13 October 2026. This article provides general information and doesn’t assess any individual’s tax position.
