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Letter to Shareholders re:Share Plans

Document date:  Tue 24 Oct 2000
Published:  Tue 24 Oct 2000 13:58:26
Document No:  168876
Document part:  A
Market Flag:  N
Classification:  Letter to Shareholders

AUSTRALIA & NEW ZEALAND BANKING GROUP LI      2000-10-24  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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LETTER TO SHAREHOLDER

This letter is to draw your attention to changes to the rules of the
Share Plans and provide current information on the Shareholder
Privilege Card for 2001 and other items of interest to shareholders.

A Shareholder Election Form has been provided so that should you wish
to make an election, or change any of your existing elections, you
may complete the form and return it in the reply paid envelope or by
facsimile.

SHARE PLANS

1.  CAP ON PARTICIPATION IN SHARE PLANS
                   
A change has been made to the rules of the Dividend Reinvestment Plan
(DRP) and Bonus Option Plan (BOP) in respect of the final dividend
payable for the year ended 30 September 2000 and future dividends.
        
Pursuant to the rules of both the DRP and the BOP, future
participation in both Plans has been capped at a maximum of 50,000
shares for each shareholder's total shareholding and this cap applies
for the final dividend and future dividends. Given the level of the
cap, approximately 99.5% of the Bank's shareholders will not be
affected by the change and will be able to fully participate in 
either Plan. 
      
2.  PRICING PERIOD FOR SHARE PLANS
                   
The rules of both the DRP and the BOP have been amended so that in
future the calculation of the weighted average share price will be
the first five trading days after the relevant record date for each
dividend. This amendment will apply for the dividend to be paid in
December 20OO and for future dividends.
                   
A copy of the Terms and Conditions governing the DRP and BOP is
available on the Bank's internet site at www.anz.com or from ANZ
Share Registry.

3.  HOW TO JOIN
                   
Almost half of our shareholders currently participate in the DRP or
the BOP. Should you wish to participate in either plan, or change
your existing election, please complete and return the enclosed
Shareholder Election Form.

PRIVILEGE CARD

4.  2001 SHAREHOLDER PRIVILEGE CARD
                   
For the 2001 year the Bank will offer a Shareholder Privilege Card to
those shareholders resident in Australia or New Zealand with a
minimum shareholding of 300 shares. Recently shareholders with less
than 300 shares were offered an opportunity to increase their
shareholding to 300 shares. If you hold at least 300 shares as at 1
January 2001 your Shareholder Privilege Card will be posted to you
during January 2OOl. The benefits associated with the card for the
2001 year will be set out in a brochure accompanying the card.

INFORMATION FOR SHAREHOLDERS

5.  DIVIDENDS BY DIRECT CREDIT
                   
For those shareholders who currently receive their dividend by cheque
the Bank strongly recommends the payment of dividends by direct
credit as being safer, faster and not subject to the risk of mail
going astray.
                   
If direct credit is used the funds can be credited to your nominated
bank account on the day the dividend is paid in Australia in A$, in
New Zealand in NZ$ or in United Kingdom in GBP. A dividend advice
will still be provided to you either electronically or by post.
                  
The enclosed Shareholder Election Form in respect of direct 
crediting of dividends may be completed and returned. 
       
6.  ELECTRONIC REGISTRATION
                  
A significant number of shareholders have already registered to receiv
information, including the Annual Report electronically. If you would
also like to receive material electronically please go to www.anz.com
click on shareholders', click on 'view your personal shareholding'
and then follow the prompts. You will need to have your Shareholder
Reference Number (your SRN or HIN) available to enable you to
register.

7.  ANNUAL REPORT ELECTION

A number of shareholders have elected either not to receive a hard
copy of the Annual Report or alternatively to view it electronically
over the web. This is a popular election and one the Bank encourages
as it results in a saving of costs. If you currently receive a hard
copy of the Annual Report and no longer wish to receive it, the 
enclosed Shareholder Election Form may be completed and returned.

8.  2000 FINAL DIVIDEND
                  
The Final Dividend for the 2OOO financial year will be paid on l5
December 2OOO. The record date (the date when you must be registered
as a shareholder to receive the dividend) will be 9 November 2000.
The ex-dividend date for trading on the ASX will be 2 November 2000.

NEW ZEALAND SHAREHOLDERS

9.  NZ RESIDENT WITHHOLDING TAX
                  
If you are a New Zealand resident shareholder, you may have 
noticed that for the Interim Dividend paid in July 2000, NZ Resident
Withholding Tax("RWT")was not deducted. This change occurred because
last March management of the share registry was moved from Auckland
to Melbourne and there was no longer an obligation to deduct RWT in
New Zealand. 

One advantage was that the gross amount of the dividend could be paid
to all shareholders. For those shareholders who are taxable in New
Zealand on the dividends, they will need to ensure that the dividends
are still included as part of their taxable income (even if they have
not in the past been required to file a tax return) and pay tax
accordingly.
                  
There are expected to be a small number of New Zealand shareholders
who may become provisional taxpayers as a result of the change to the
way the dividend is paid. This may be the case for any shareholder
who has tax to pay of more than NZ $2,500 on income for the year to
31 March 2001 which does not have New Zealand tax deducted by the
payer (such as the ANZ dividend). Such shareholders should consider
seeking tax advice on their position.
              
10. NZ PARTICIPANTS IN THE DRP AND BOP
                  
The remaining small cash balances retained in NZ resident
shareholders' DRP and BOP accounts after each dividend has in the
past been calculated in NZ$. With the move of the NZ share reqister
to Melbourne it is now proposed) that the small credit balances in
participants'DRP and BOP accounts will be converted from NZ$ to A$ at
the exchange rate applicable on a date to be selected by the Bank. In
future all DRP and BOP calculations will be in A$. The change will
have no impact on the number of shares issued to participants under
the DRP or BOP.
             
11. PAYMENT IN NEW ZEALAND DOLLARS
                  
In the past dividends have been paid in New Zealand or Australian
currency based on which register the shares were located. With the
merging of the registers it is now proposed that for shareholders
with a NZ resident address dividends may be paid by direct credit to
either an Australian bank account in A$, to a New Zealand bank
account in NZ$ or if there is no direct credit election then by cheque
in NZ$.
    
To have your dividend paid by direct credit the enclosed Shareholder
Election Form may be completed and returned.

If you would like to change any of your elections please complete and
return the enclosed Shareholder Election Form.
              
Should there be any additional information you seek regarding your
shareholding, or the matters raised in this letter, please contact
your local ANZ Share Registry atone of the following contact numbers.
             
AUSTRALIA             NEW ZEALAND      UNITED KINGDOM  OTHER COUNTRIES
1800 11 33 99         0800 174 007    (0117) 930 6504 (61 3) 9615 5989
             
              
J Staffer
COMPANY SECRETARY

A full copy of the Shareholder Election Form is available for
purchase from ASX Customer Service on 1 300 300 279. Charges apply.