Important: This page is an independent reference summary. Verify classification decisions against the official ABS source before using them for tax, licensing, immigration or compliance purposes.

What this class covers

ANZSIC class 6240 covers businesses that primarily invest their own capital in financial assets rather than providing investment services to clients. These entities make investment decisions for their own portfolios, typically holding assets such as shares, bonds, bills, financial derivatives, and mortgages. The classification includes various structures that pool capital for investment purposes, but excludes separately constituted superannuation funds and entities that manage investments on behalf of others for fees.

This classification is used by Australian government agencies, researchers, and businesses for statistical reporting, market analysis, and regulatory purposes. When registering an ABN or filing tax returns, businesses in this sector would typically use this classification to describe their primary activity.

Common examples include:

  • Investment companies that trade shares and bonds using their own capital
  • Holding companies that primarily exist to own shares in subsidiary companies
  • Charitable or educational foundations that manage endowment funds invested in financial markets
  • Friendly societies that invest member contributions in financial assets
  • Unit trusts structured to hold portfolios of financial assets rather than physical property

Primary activities in plain English

Businesses in this class are primarily engaged in:

  • Operating investment trusts that hold financial assets like stocks and bonds (but not managing trusts for others)
  • Running holding companies whose main purpose is owning shares in other companies
  • Managing charitable or educational endowment funds invested in financial markets
  • Operating friendly societies that invest member funds in financial instruments
  • Running mutual funds that invest their own capital (not managing client funds for fees)
  • Investing company capital in financial derivatives, mortgages, and other financial instruments

The key distinction is that these activities involve investing the entity's own money rather than providing investment management services to external clients.

Exclusions and nearby codes

Several related activities are specifically excluded from this class and classified elsewhere:

  • Superannuation funds (class 6330) - Entities providing retirement benefits through separately constituted superannuation funds
  • Financial asset broking (class 6411) - Businesses that underwrite securities or buy/sell financial assets on behalf of clients
  • Investment management services (class 6419) - Firms that manage investments or provide advisory services to others for fees
  • Non-financial asset leasing (class 6640) - Companies renting intangible assets like patents and trademarks
  • Property trusts (classes 6711 and 6712) - Trusts operating residential or non-residential property investments

These exclusions help ensure businesses are classified based on their primary economic activity rather than superficial similarities.

Practical guidance

When registering your business with the Australian Business Register, you'll need to select the appropriate ANZSIC classification. For financial asset investing activities, class 6240 is typically the correct choice if you're investing your own capital in financial markets. The corresponding Business Industry Code (BIC) for tax purposes is 62400.

Businesses in this classification should be aware that different regulatory requirements may apply compared to financial service providers. Since you're not handling client funds or providing advice to consumers, you may not need an Australian Financial Services Licence, but you should verify this with ASIC based on your specific circumstances.

For workers' compensation insurance, businesses in this class would typically fall under financial services classifications, but premium rates can vary based on specific risk factors. When applying for grants or government programs, your ANZSIC classification may affect eligibility for industry-specific initiatives.

It's important to review your classification periodically, especially if your business activities change significantly. Moving into investment management for clients would typically require reclassification to class 6419.