Short answer: Most Australian dollar bonds pay interest every quarter or every six months. Of the 360 AUD bonds available through Candour Capital today, 203 pay quarterly (nearly all floating rate notes, whose coupon resets to 3-month BBSW each quarter), 135 pay every six months (most fixed and fixed-then-floating bonds) and 22 pay once a year (all bonds issued offshore). Interest is paid on each coupon date into the bank account linked to your custody account.
| How often | Bonds on our range | Mostly |
|---|---|---|
| Quarterly | 203 | floating (200), fixed (3) |
| Half-yearly | 135 | fixed, then floating (68), fixed (66) |
| Yearly | 22 | fixed (22) |
Fixed rate bond, 5.00% a year, paid every six months: A$500,000 × 5.00% ÷ 2 = A$12,500 on each coupon date.
Floating rate note, BBSW + 0.85% (the median margin on the big-four senior notes on our range): with 3-month BBSW at 4.83% on 2026-10-26, the next coupon on A$500,000 for a 91-day quarter is A$500,000 × 5.68% × 91/365 = A$7,081. AUD floating notes count actual days over 365, and the rate resets at the start of each quarter.
Bonds with an ISIN starting AU are held in Austraclear, the ASX settlement system; most offshore bonds (ISINs starting XS) are held in Euroclear or Clearstream. On the coupon date the issuer pays through that system to the custodian, which credits the bank account on your custody account, usually the same day.
AUD bonds in Austraclear usually have a record date eight calendar days before each payment. If you buy after the record date, the coming coupon goes to the seller and the bond trades 'ex-interest'.
If you buy between coupon dates, you pay the seller the interest earned since the last coupon, then receive the full next coupon. On A$500,000 of a 5.00% bond bought 60 days after its last coupon, that is about A$4,110. When you sell, the buyer pays you the same way.
Interest is assessable income. Non-residents generally have 10% interest withholding tax deducted unless the bond is exempt; ask your accountant about your situation.
General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.