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  • Calculator released for the demerger of Coles from Wesfarmers

    This information applies to you, and may help you prepare your 2019 tax return, if both of the following apply.

    • You were listed on the share register of Wesfarmers as at 4.00pm Western Standard Time on 22 November 2018.
    • You held your shares on capital account (that is, not as revenue assets or as trading stock).

    This information does not apply to you if the taxation of financial arrangements (TOFA) rules in Division 230 of the Income Tax Assessment Act 1997 apply to you. If you are an individual, the TOFA rules will generally not apply to you unless you have made an election for them to apply.

    Wesfarmers demerger information

    We have published tax information for Wesfarmers shareholders who received shares in Coles Group Limited as a result of the demerger of Coles. This information will help you work out:

    • whether you have a capital gain you must take into account when working out your net capital gain or net capital loss (if any) for the 2019 income year
    • whether any of your Coles shares are taken to be pre-CGT
    • the adjustments you need to make to the cost bases of your Wesfarmers shares
    • the cost bases of your Coles shares
    • the date you are taken to have acquired your Coles shares for CGT discount purposes
    • if your Coles shares were sold through the Sale Facility
      • the amount of your capital gain or capital loss (if any) from the sale
      • if you were a small shareholder who chose to donate the proceeds of the sale to ShareGift, your deduction for making the donation.
       

    To help you make the calculations, our web content contains worked examples.

    Next steps:

    Wesfarmers demerger of Coles group calculator

    This calculator will help you work out:

    • how many of the Coles shares you received are taken to be pre-CGT, and how many are post-CGT
    • the capital returned to you under the demerger
    • the resulting capital gain (if any) you must take into account when working out your net capital gain or net capital loss for the 2019 income year
    • the cost base adjustments you must make to your post-CGT Wesfarmers shares as a result of the demerger
    • the cost bases of your Coles shares
    • the date you are taken to have acquired your Coles shares for the purposes of the CGT discount
    • the dividend you received under the demerger (which is not taxed)
    • if your Coles shares were sold through the Sale Facility
      • the amount of your capital gain or capital loss (if any) from the sale
      • if you were a small shareholder who chose to donate the proceeds of the sale to ShareGift, your deduction for making the donation.
       

    Next steps:

    Last modified: 28 Jun 2019QC 59483