Raiz Invest (ASX:RZI) shares closed down 32% at A$0.34 on Tuesday 13 October 2026, after the micro-investing company revealed historical tax withholding and reporting failures dating back to 2015. The stock fell as much as 48% to A$0.26 in early trade, after resuming from a trading halt that began on 9 October.
What Raiz found
In its ASX announcement, Raiz said tax was not withheld from certain payments where investors had not quoted a tax file number (TFN) or ABN or claimed an exemption. Related reports were also not lodged with the Australian Taxation Office (ATO).
The issues affect three funds offered through the Raiz platform:
- Raiz Invest Australia Fund
- Raiz Property Fund
- Raiz Residential Property Fund
They date back to when the funds were established in 2015. The problems were found through a review started by CEO Craig Keary, who was appointed on 1 June 2026. Independent adviser WTS Australia has completed the first phase of its review, which is continuing and may identify further matters.
Is your money safe with Raiz?
Raiz says customer funds remain secure and are held by independent custodians. Customers do not need to take any action at this time, and members of the Raiz Invest Super Fund are not affected.
However, Raiz has not yet worked out whether customers will face any financial, tax or reporting consequences. It says it will contact customers directly if they are affected and will update the market.
Raiz has notified ASIC and lodged a voluntary disclosure with the ATO.
How big could the bill be?
This is the big unknown. The board believes the matters may have a material financial impact, including remediation costs, penalties and interest charges. However, Raiz says it cannot yet reliably estimate the amounts involved or how many account holders are affected.
For context, Raiz reported FY26 underlying EBITDA of A$5.5 million, free cash flow of A$2.7 million and cash of A$15.4 million at 30 June 2026. With no estimate yet, investors are left guessing how large the bill might be against a balance sheet of that size.
Keary said: “These issues have existed since inception in 2015 and fixing them will take time.”
What Raiz investors and users should watch
- The cost estimate, once the WTS Australia review is complete
- Any ATO or ASIC response to the disclosure
- Customer notices, if Raiz finds account holders are affected
- Director share trades in Appendix 3Y notices after the fall. Our Megaport insider trading analysis shows why the type of trade matters
Bottom line
Raiz Invest shares lost almost a third of their value after the company revealed a tax problem it cannot yet put a price on. For users, Raiz says customer funds remain secure with independent custodians. For investors, the key question is how much the remediation, penalties and interest will cost, and Raiz has not answered that yet.
