• Some major share transactions

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Company

    Details of transaction

    AMP Ltd

    Demutualisation
    Acquisition cost for AMP Ltd shares was $10.43 per share and acquisition date was 20 November 1997.

    Demerger
    In December 2003 the UK operations of AMP (referred to as 'HHG') were demerged from AMP. As part of the demerger, shareholders were issued with rights to acquire shares at a discount. Also, some of each shareholder's AMP shares were cancelled and their remaining shares were split so that they had the same number of shares as before the cancellation. The tax consequences of the demerger, including the rights issue, are set out in the fact sheet, AMP Group demerger, available on our website - together with a calculator - at www.ato.gov.au

    BHP Billiton Limited

    Demerger
    In July 2002, BHP shareholders received one BHP Steel Ltd share for every five BHP Billiton shares held.

    BHP Billiton has advised that BHP Steel represented 5.063% of the market value of the group as a whole just after the demerger. Shareholders who received BHP Steel shares should use this percentage to apportion the sum of the cost bases of their post-CGT BHP Billiton shares between these shares and the post-CGT BHP Steel shares.

    In November 2003, BHP Steel Limited changed its name to BlueScope Steel Limited.

    Commonwealth Bank
    of Australia Ltd

    Public share offer
    For the first instalment: Acquisition date and indexation available from 13 July 1996.

    For the final instalment: Indexation also applied from 13 July 1996.

    Share buy-back
    In March 2004, the Commonwealth Bank (CBA) announced a general share buy-back. Shareholders who took part in the buy-back received $27.50 per share, which included a fully franked dividend of $16.50 per share.

    The capital proceeds are $13.92 per share - that is, the amount of proceeds actually received ($11.00) plus the amount by which the tax value exceeded the buy-back price ($2.92).

    The date the shares were sold under the buy-back was 29 March 2004.

    If the capital proceeds of $13.92 exceed the cost base of the share, the difference is a capital gain to the shareholder. If $13.92 is less than the share's reduced cost base, the difference is a capital loss.

    CSR Limited - Rinker Group Limited

    Demerger
    In April 2003 CSR shareholders received one Rinker share for every CSR share they held.

    CSR has advised that Rinker represented 75% of the market value of the group as a whole just after the demerger. Shareholders who received Rinker shares should use this percentage to apportion the sum of the cost bases of their post-CGT CSR shares between these shares and the post-CGT Rinker shares.

    See Class Ruling CR 2003/10 Income tax: Special Dividend, Capital Reduction and Related Scheme of Arrangement for the Demerger of Rinker Group Limited from CSR Limited.

    Foster's Group Limited

    Share buy-back
    On 6 November 2003, Foster's Group Limited announced a share buy-back. Shareholders who took part in the buy-back received $4.00 per share, made up of a fully franked dividend of $2.19 and capital proceeds of $1.81. The date the shares were sold under the buy-back was 22 December 2003.

    If the capital proceeds of $1.81 exceed the cost base of the share, the difference will be a capital gain to the shareholder. If $1.81 is less than the share's reduced cost base, the difference will be a capital loss.

    See Class Ruling CR 2004/16 - Income tax: Share buy-back: Foster's Group Ltd.

    Harris Scarfe Holdings Ltd

    Liquidator declares shares worthless
    The liquidator's written declaration made on 30 June 2003 enabled shareholders to choose to make a capital loss equal to the reduced cost base of their shares at the time of the liquidator's declaration. If they make this choice, they have made a capital loss in the 2002-03 income year.

    HIH Insurance Ltd

    Liquidator declares shares worthless
    The liquidator's written declaration made on 10 October 2001 enabled shareholders of HIH Insurance Limited to choose to make a capital loss in 2001-02 equal to the reduced cost base of the share under CGT event G3.

    Insurance Australia Group (IAG) Limited

    Share purchase plan
    Offers opened on 4 November 2002 for shareholders to purchase shares from IAG for $2.40 per share free of brokerage and transaction costs.

    There are no CGT consequences at the time of purchase. However, there are taxation consequences in relation to owning and disposing of the shares you purchase.

    Share buy-back
    In May 2004, IAG announced a share buy-back. At the time of publication (May 2004), not enough information was available to know what the tax consequences are.

    The buy-back was expected to be completed before 30 June 2004. Therefore, shareholders who took part will need to find out what the consequences are so they can meet any 2003-04 CGT obligation.

    IOOF Ltd

    Demutualisation
    Acquisition cost for IOOF Ltd shares was $2.53 per share and acquisition date was 14 June 2002.

    MIM Holdings Ltd (MIM)

    Takeover
    On 24 June 2003 Xstrata plc purchased all shares in MIM Limited as part of a takeover. MIM shareholders received capital proceeds of $1.72 per share and disposed of their shares on 24 June 2003.

    No rollover was available to MIM shareholders.

    Mincor Resources

    Demerger
    In October 2003, Mincor shareholders received one Tethyan Copper Company Ltd share for every 3.37 Mincor shares held.

    Mincor has advised that Tethyan Copper Company represented 9.582% of the market value of the group as a whole just after the demerger. Shareholders who received Tethyan Copper Company shares should use this percentage to apportion the sum of the cost bases of their Mincor shares between these shares and the Tethyan Copper Company shares.

    See Class Ruling CR 2003/66 - Income tax: Capital gains: demerger rollover relief for shareholders: demerger of Tethyan Copper Company Limited from Mincor Resources NL.

    NRMA Insurance Group Ltd (NIGL)

    Demutualisation
    Acquisition cost of NIGL shares allocated to shareholders was $1.78 per share.

    Acquisition date was 19 June 2000.

    For additional shares purchased through the facility, acquisition cost was $2.75 and acquisition date was 6 August 2000.

    One.Tel Ltd

    Liquidator declares shares worthless
    The liquidator's written declaration made on 30 May 2002 enabled shareholders of One.Tel Ltd to choose to make a capital loss in the 2001-02 year equal to the reduced cost base of the share.

    Over 50s Mutual Friendly Society Limited (OFM Ltd)

    Demutualisation
    Acquisition cost for OFM Ltd shares was $1.65 per share and acquisition date was 12 June 2001.

    Pasminco Limited

    Statement that shares are worthless not made by liquidator
    The statement by the administrators on 4 September 2002 did not cause a CGT event G3 (liquidator declares shares worthless) to happen. Shareholders of Pasminco cannot choose to make a capital loss under CGT event G3 until such time as a liquidator may make such a declaration.

    See Class Ruling CR 2002/85 - Income tax: Capital gains tax: CGT event G3: Pasminco Limited (subject to deed of company arrangement).

    See Budget announcements.

    Creation of a trust over shares
    Shareholders may make a capital loss if they create a valid trust over shares they own in a company under administration, like Pasminco shareholders who agree to sell their shares but hold them on trust for the buyer until the sale can be completed.

    See Tax Determination TD 2004/13 - Income tax: capital gains: can CGT event E1 in section 104-55 of the Income Tax Assessment Act 1997 happen to a shareholder in a company in voluntary administration under Part 5.3A of the Corporations Act 2001 who declares a trust over their shares?

    Sonic Health Care Limited - SciGen Limited

    Demerger
    In December 2002, Sonic shareholders received one SciGen share in the form of a CHESS Unit of Foreign Currency (CUFS) for every Sonic share held.

    Sonic has advised that SciGen represented 0.66% of the market value of the group as a whole just after the demerger. Shareholders who received SciGen shares should use this percentage to apportion the sum of the cost bases of their post-CGT Sonic shares between these shares and the post-CGT SciGen shares.

    See Class Ruling CR 2002/89 - Income tax: Dividend, capital reduction and related schemes of arrangement for the demerger of SciGen Limited from Sonic Healthcare Limited.

    TAB Limited

    Share buy-back
    On 21 March 2002, TAB Limited announced a share buy-back. The capital proceeds received were $2.35.

    The amount by which the capital proceeds of $2.35 exceeds the cost base of each share will be a capital gain to the shareholder. If the share's reduced cost base exceeds $2.35, the difference will be a capital loss.

    The announcement date was 21 March 2002.

    See Class Ruling CR 2002/16 - Income tax: Share buy-back: TAB Limited.

    Telstra

    Public share offer 1
    For the first instalment: Acquisition of shares was on (and indexation available from) 15 November 1997.

    For the final instalment: Indexation applied from 15 November 1997.

    Public share offer 2
    For the first instalment: Date of acquisition was 22 October 1999 if the instalment receipts were purchased through the offer. No indexation applied because acquisition was after 21 September 1999.

    For the final instalment: No indexation applied as above.

    Share buy-back
    On 7 October 2003 Telstra announced a share buy-back. The final buy-back price of $4.20 per share included a fully franked dividend of $2.70 per share and the capital proceeds of $1.50 per share.

    The amount by which the reduced cost base of each share exceeds the capital proceeds of $1.50 will be a capital loss to the shareholder.

    Western Mining Corporation Limited - WMC Resources Limited

    Demerger
    In December 2002, WMC shareholders received one WMCR share for every WMC share held. Also WMC Limited changed its name to Alumina Ltd.

    Alumina has advised that WMCR represented 46.30% of the market value of the group as a whole just after the demerger. Shareholders who received WMCR shares should use this percentage to apportion the sum of the cost bases of their post-CGT Alumina shares between these shares and the post-CGT WMCR shares. See Class Ruling CR 2002/81 - Income tax: Demerger rollover relief for shareholders: demerger of WMC Ltd.

    Woolworths

    Share buy-back
    On 14 April 2003 Woolworths announced a share buy-back. The final buy-back price of $11.40 per share included a fully franked dividend of $8.52 per share and capital proceeds of $2.88 per share.

    The amount by which the capital proceeds of $2.88 exceed the cost base of each share is a capital gain to the shareholder. If the share's reduced cost base exceeds $2.88, the difference is a capital loss.

    For more information about share transactions in earlier years, visit our website at www.ato.gov.au.

    Last modified: 04 Mar 2016QC 27527