The taxation implications of buying, holding and selling Australian Government Bonds (AGBs) depend on your individual situation. Talk to a professional adviser before making an investment decision.
Payments to non-Australian residents
Coupon interest payments on exchange-traded AGBs may be eligible for an exemption from non-resident interest withholding tax if they are issued over Treasury Bonds that satisfy the 'public offer test'. The Australian Government has stated that, unless otherwise announced at the time of issue, it will seek to issue Treasury Bonds and Treasury Indexed Bonds in a manner that satisfies the test. See the taxation information in the information statement for details.