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RNS Number:3827K
Commonwealth Bank of Australia
31 March 2005




                        Notices of Proposed Adjustments


Attached is a release made by ASB Bank, a wholly owned subsidiary of
Commonwealth Bank of Australia, to the New Zealand Exchange today.


Commonwealth Bank has also determined that no provision is required in respect
of the issues covered by the New Zealand Inland Revenue Department Notices of
Proposed Adjustment.


Yours faithfully



J D Hatton
Company Secretar



Media Release
30 March 2005




                     New Zealand Inland Revenue Tax Notices

Statement made by John Duncan, Head of Group Finance, ASB Bank



ASB Bank has received Notices of Proposed Adjustments (NOPAs) from the New
Zealand Inland Revenue Department (IRD) in respect of structured finance
transactions in the years ended 30 June 2001 to 30 June 2003.



A NOPA is not an assessment of tax.  It is the first step in New Zealand's tax
disputes process, under which the IRD formally advises a taxpayer that they are
proposing to amend a tax assessment.  Following the IRD's industry-wide review
of structured finance transactions, a number of NOPAs have already been issued
in relation to similar transactions undertaken by all of the other major banks
in New Zealand.



Potential Financial Impact



*   The adjustments proposed by the IRD in respect of ASB Bank for the
transactions covered by the NOPAs are for the 2001 to 2003 tax years and would
result in an estimated potential tax liability of NZ$71 million.  If applied up
to 28 February 2005 an additional tax liability of NZ$25 million would be
implied.



*   Should NOPAs also be issued to ASB Bank for all similar structured finance
transactions, and for all tax years from 2001 onwards, the adjustments proposed
by the IRD would result in a net potential tax liability for all transactions of
NZ$157 million up to 28 February 2005 (including tax effected use of money
interest charges).



ASB Bank has taken extensive independent tax and legal advice and is confident
the tax treatment it has adopted for these and other similar transactions is
correct.  Accordingly, the Bank does not currently propose to create any
provisions for tax liability as a result of the issue of the NOPAs.  ASB will
continue to work cooperatively with the IRD to finalise their review of the
Bank's other structured finance transactions.




- Ends -




For further information contact John Duncan, Head of Group Finance, ASB Bank, ph
(9) 374 8815 or Linley Wood, Head of Corporate Affairs, ASB Bank, ph: 021 221
2121





Issued on behalf of ASB Bank by Simon Kenny (Network PR), ph: 021 739974


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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