The Trust was formed on 30 May 1988 through the creation of a Trust Deed under the Trustee Banks Restructuring Act 1988. The Trust was settled with 60 million $1 prepaid ordinary shares in ASB Bank Limited, representing 100% of the issued capital. In 1989 45 million shares were sold to the Commonwealth Bank of Australia for $252,000,000, which was then donated to establish the ASB Charitable Trust.
On the 3rd of October 2000 the remaining 25% shareholding was sold to the Commonwealth Bank for $560 million.
Because the objectives of the ASB Charitable Trust were more restrictive than those of the ASB Bank Community Trust, it was able to obtain charitable status under the then current income tax legislation. This meant that the Charitable Trust’s income was exempt from income tax, whereas income earned by the Community Trust remained subject to income tax.
The Income Tax Act 1994 was amended with effect from the 2005 financial year to confer income tax exempt status on community trusts established under the 1988 Trustee Banks Restructuring Act. With the Trust now able to enjoy income tax exempt status, there was no longer any need for the “two trust” structure to continue. Based on advice received, the Trustees of the ASB Charitable Trust decided to distribute the Trust’s Capital to the ASB Bank Community Trust as a precursor to winding up the Trust. This distribution took place on 31 March 2006.
On 17 July, 2006, the ASB Bank Community Trust was renamed ASB Community Trust.