• Appendix 1: Some major share transactions

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

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    Company

    Details of transaction

    AMP Ltd

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

    Demerger
    In December 2003 the UK operations of AMP (referred to as 'HHG') were demerged from AMP. There were tax consequences from the demerger for shareholders in 2003-04 which are set out in our fact sheet AMP Group demerger: How it affects Australian resident shareholders. You can also work out the cost base of AMP and HHG shares after the demerger using the fact sheet or the AMP demerger calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information').

    2005 return of capital
    On 16 June 2005, AMP made a return of capital to shareholders of $0.40 per share. Shareholders needed to reduce the cost base and reduced cost base of each share by $0.40. For each share that had a cost base of less than $0.40, the difference was a capital gain in 2004-05. See our fact sheet AMP 2005 return of capital.

    Aristocrat Leisure Ltd

    2005 return of capital
    On 15 July 2005, Aristocrat made a return of capital to shareholders of $0.21 per share.

    Shareholders needed to reduce the cost base and reduced cost base of each share by $0.21. For each share that had a cost base of less than $0.21, the difference was a capital gain in 2005-06.

    See our fact sheet Aristocrat Leisure Limited (Aristocrat): 2005 return of capital.

    Australian Gas Light Company Ltd (AGL)

    Return of capital
    On 29 April 2005, AGL made a return of capital to shareholders of $0.50 per share.

    Shareholders needed to reduce the cost base and reduced cost base of each share by $0.50. For each share that had a cost base of less than $0.50, the difference was a capital gain in 2004-05.

    See our fact sheet Australian Gas Light Company (AGL) 2005 return of capital.

    Aviva Corporation Ltd

    Demerger
    In September 2004, NGM Resources Ltd (NGM) was demerged from Aviva Corporation Ltd (Aviva). The demerger involved a return of capital of $0.0012 per share, and a demerger dividend of approximately $0.002 per share in Aviva. This amount was compulsorily applied as a consideration for the acquisition of shares in NGM. Aviva shareholders were entitled to one NGM share for every 37 of their Aviva shares.

    The fact sheet 2004 Aviva Corporation Ltd demerger and the demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your Aviva and NGM shares after the demerger.

    BHP Billiton Limited

    Demerger
    In July 2002 BHP shareholders received one BHP Steel Ltd share for every five BHP Billiton shares held. In November 2003 BHP Steel Limited changed its name to BlueScope Steel Limited.

    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 BHP Steel shares they received in relation to those post-CGT BHP Billiton shares.

    The fact sheet 2002 BHP Billiton Group demerger and the demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your BHP Billiton and BlueScope shares after the demerger.

    2006 share buy-back
    On 3 April 2006, BHP Billiton completed an off-market share buy-back. Shareholders who took part in the buy-back received $23.45 per share, which included a fully franked dividend of $21.35 per share.

    For capital gains tax purposes, they are taken to have received $5.96 per share.

    The date the shares were sold under the buy-back was 3 April 2006.

    If the capital proceeds of $5.96 were more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $5.96 was less than the share's reduced cost base, the difference is a capital loss.

    See our fact sheet BHP Billiton 2006 off-market share buy-back.

    BlueScope Steel Ltd

    2005 share buy-back
    In February 2005, BlueScope Steel Ltd (formerly BHP Steel Ltd) announced a share buy-back. Shareholders who took part in the buy-back received $7.75 per share, which included a fully franked dividend of $4.68 per share.

    For capital gains tax purposes, they are taken to have received $4.79 per share.

    The date the shares were sold under the buy-back was 12 April 2005.

    If the capital proceeds of $4.79 was more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $4.79 was less than the share's reduced cost base, the difference is a capital loss.

    See our fact sheet BlueScope Steel: 2005 off-market share buy-back.

    Coles Myer Ltd

    2005 share buy-back
    On 17 March 2005, Coles Myer announced a share buy-back. Shareholders who took part in the buy-back received $8.30 per share, which included a fully franked dividend of $5.30 per share.

    For capital gains tax purposes, they are taken to have received $3.84 per share.

    The date the shares were sold under the buy-back was 23 May 2005.

    If the capital proceeds of $3.84 were more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $3.84 was less than the share's reduced cost base, the difference is a capital loss.

    See our fact sheet Coles Myer 2005 off-market share buy-back.

    Commonwealth Bank of Australia Ltd

    Public share offer
    The Commonwealth Bank public shares were acquired on 13 July 1996. For shareholders who use the indexation method in calculating their capital gain, they index their first and final instalments from 13 July 1996.

    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 Rinker shares they received in relation to those post-CGT CSR shares.

    The demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your Rinker and CSR shares after the demerger. Also see our fact sheet 2003 CSR demerger: impact on resident individual shareholders.

    Henderson Group PLC (formerly HHG PLC)

    Return of cash and reduction of investor base
    In April 2005, HHG PLC undertook a capital reduction which included:

    • a return of cash to all shareholders, and
    • a reduction in investor base - which affected shareholders unless they chose not to participate.

    There are capital gains tax consequences for shareholders. See our fact sheet HHG PLC capital reduction.

    Hibernian Friendly Society (NSW) Limited (now Aevum Limited)

    Demutualisation
    The acquisition cost for Hibernian shares was $1.162 per share and the acquisition date was 2 September 2002. Hibernian changed its name to Aevum Ltd in May 2004.

    Insurance Australia Group (IAG) Limited

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

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

    IOOF Ltd

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

    Mayne Group Ltd

    Demerger
    On 30 November 2005 Mayne Group demerged Mayne Pharma and shareholders received a return of capital of $2.49 for every Mayne Group share they owned. These amounts were compulsorily applied as consideration for the acquisition of shares in Mayne Pharma. Shareholders received one Mayne Pharma Ltd share for every Mayne Group share they held. After the demerger Mayne Group Limited changed its name to Symbion Health Ltd.

    Mayne Group has advised that Mayne Pharma represented 44.217% of the market value of the group as a whole just after the demerger. Shareholders who received Mayne Pharma shares should use this percentage to apportion the sum of the cost bases of their post-CGT Mayne Group shares between these shares and the Mayne Pharma shares they received in relation to those post-CGT Mayne Group shares.

    The fact sheet 2005 Mayne Group Ltd (renamed Symbion Health Ltd) demerger and the demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your Mayne Group and Mayne Pharma shares after the demerger and to work out whether have made a capital gain under the demerger.

    Mincor Resources NL

    Demerger
    In October 2003 Mincor shareholders received one Tethyan Copper Company Ltd (TCC) share for every 3.37 Mincor shares they held.

    Mincor has advised that TCC represented 9.582% of the market value of the group as a whole just after the demerger. Shareholders who received TCC shares should use this percentage to apportion the sum of the cost bases of their post-CGT Mincor shares between these shares and the TCC shares they received in relation to those post-CGT Mincor shares.

    The demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your Mincor and TCC shares after the demerger.

    See our fact sheet 2003 Mincor Resources NL demerger.

    Minotaur Resources Ltd

    Demerger and takeover
    On 17 February 2005, Minotaur Resources Limited (Minotaur) demerged Minotaur Exploration Limited (MinEx) and shareholders received a return of capital of $0.3258 and a dividend for every Minotaur share they owned. These amounts were compulsorily applied as consideration for the acquisition of shares in MinEx. That is, shareholders did not receive a cash payment, instead these amounts were used to give them a MinEx share.

    For every Minotaur share owned, shareholders received one MinEx share.

    In conjunction with the demerger, Oxiana Limited (Oxiana) and Minotaur shareholders agreed to a takeover of Minotaur. Under the takeover, Minotaur shareholders received 1.85 new Oxiana shares for each of their Minotaur shares.

    The fact sheet 2005 Minotaur Resources Ltd demerger and the demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your MinEX and Oxiana shares after the demerger and to work out whether you have made a capital gain under the demerger.

    MPI Mines Ltd

    Demerger and takeover
    On 26 November 2004, MPI Mines Limited (MPI) demerged Leviathan Resources Limited (Leviathan). Shareholders received a return of capital of $0.28 for every MPI share they owned. This amount was compulsorily applied as consideration for shares in Leviathan. For every three MPI shares they received one Leviathan share.

    In conjunction with the demerger, LionOre Australia Pty Ltd (LionOre) made a takeover offer for MPI shares. Under the takeover, MPI shareholders were offered $1 and 0.1675 of a LionOre share (in the form of a CHESS Depository Interest) for each of their MPI shares. The takeover offer was accepted by the majority of shareholders. Those who did not accept the offer then had their MPI shares compulsorily acquired by LionOre.

    Our fact sheet 2004 MPI Mines Ltd demerger and takeover - Impact on resident individual shareholders will help you work out the tax consequences of both the demerger and takeover.

    News Corporation Ltd

    Reincorporation
    In September 2004, News Corporation Ltd reincorporated in the US. Shareholders of News Corporation Ltd can choose scrip-for-scrip rollover (see Takeovers and mergers) on the receipt of News Corporation shares (including those represented by CHESS Depository Instruments or CDIs) for the cancellation of their News Corporation Ltd shares. Note: Scrip-for-scrip rollover does not apply to a capital loss.

    If rollover is chosen, the first element of the cost base of each News Corporation share (including those represented by CDIs) is the sum of the cost base of the two News Corporation Ltd shares they exchanged for it, and shareholders are taken to have acquired their News Corporation shares or CDIs at the time they acquired the News Corporation Ltd shares they exchanged for them.

    See our fact sheet Newscorp reincorporation.

    NRMA Insurance Group Ltd (NIGL)

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

    The acquisition date was 19 June 2000.

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

    Over 50s Mutual Friendly Society Limited (OFM Ltd)

    Demutualisation
    The acquisition cost of OFM Ltd shares was $1.65 per share and the acquisition date was 12 June 2001.

    Pasminco Limited

    Declaration that shares are worthless made by administrators
    Following the declaration by the administrators on 31 March 2005 that they consider that Pasminco shares are worthless, shareholders of Pasminco can choose to make a capital loss in the 2004-05 year equal to the reduced cost base of their shares at the time of the declaration.

    See our fact sheet Capital losses on Pasminco Ltd shares.

    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 - for example, Pasminco shareholders who agree to sell their shares but hold them on trust for the buyer until the sale can be completed. See our fact sheet Capital losses on Pasminco Ltd shares and Taxation 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?

    Pivot Ltd

    Merger
    Pivot Ltd changed its name to Incitec-Pivot Ltd in April 2003 and then merged with Incitec Fertilizers Ltd (IFL) on 1 June 2003.

    Shareholders of Pivot who acquired their shares before 20 September 1985 made a capital gain under CGT event K6 if their capital proceeds per share was more than $15.08 and they disposed of them after 28 July 2003.

    The capital gain is equal to 70% of the difference between the capital proceeds and $15.08. (No capital loss is available under CGT event K6.)

    See our fact sheet Pivot merger with Incitec - CGT on sale of pre-CGT shares.

    Promina Group Ltd

    2005 return of capital
    On 20 June 2005 Promina Group Ltd made a return of capital to shareholders of $0.23 per share.

    Shareholders needed to reduce the cost base and reduced cost base of each share by $0.23. For each share that had a cost base of less than $0.23, the difference was a capital gain in 2004-05.

    See our fact sheet Promina Group Ltd 2005 return of capital.

    Rio Tinto Ltd

    2005 share buy-back
    On 3 February 2005, Rio Tinto announced a share buy-back. Shareholders who took part in the buy-back received $36.70 per share, which included a fully franked dividend of $32.70 per share.

    For capital gains tax purposes, they are taken to have received $6.44 per share.

    The date the shares were sold under the buy-back was 9 May 2005.

    If the capital proceeds of $6.44 was more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $6.44 was less than the share's reduced cost base, the difference is a capital loss.

    See our fact sheet Rio Tinto Ltd 2005 share buy-back.

    Telstra

    Public share offer 1
    The Telstra public shares were acquired on 15 November 1997. For shareholders who use the indexation method in calculating their capital gain, they index their first and final instalments from 15 November 1997.

    Public share offer 2
    The Telstra public shares were acquired on 22 October 1999 if the instalment receipts were purchased through the offer. Indexation does not apply as the shares were acquired after 11.45am (by legal time in the ACT) on 21 September 1999.

    Virtualplus Holdings Ltd

    Demerger
    In December 2004, Novacoat Holdings Ltd (NHL) was demerged from Virtualplus Holdings Ltd (VHL), formerly mBox.com Ltd.

    The demerger involved a return of capital of $0.02162 per share in VHL. This amount was compulsorily applied as a consideration for the acquisition of shares in NHL. VHL shareholders were entitled to one NHL share for every 10 of their VHL shares.

    The fact sheet 2005 Virtualplus Holdings Ltd demerger and the demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your VHL and NHL shares after the demerger and to work out whether you have made a capital gain under the demerger.

    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 WMCR shares they received in relation to those post-CGT Alumina shares.

    The demergers calculator on our website at www.ato.gov.au/demergers (follow the link under 'Shareholder information') will help you work out the cost bases of your Alumina and WMCR shares after the demerger.

    Takeover
    In March 2005 BHP Billiton Ltd made a takeover offer for WMC Resources Ltd. Shareholders received $7.85 for each WMC share they held. The date the shares were disposed of under the takeover offer was:

    • 3 June 2005 - if the shareholder accepted the offer on or before that date, or
    • the date the offer was accepted - if the shareholder accepted the offer between 4 June 2005 and 17 June 2005 and the acceptance was received by BHP by 7.30pm on 17 June 2005, or
    • for other WMC shareholders - in the 2005-06 income year, when BHP Billiton completed the compulsory acquisition.

    If the capital proceeds of $7.85 per share was more than the cost base of the share, the difference is a capital gain in 2004-05. If $7.85 was less than the share's reduced cost base, the difference is a capital loss in 2004-05.

    See our fact sheet WMC Resources Ltd takeover by BHP Billiton Ltd.

    Shareholders who did not accept the offer by 17 June 2005 should also see the fact sheet.

    Westfield

    Capital restructure
    In July 2004, Westfield Group restructured by issuing holders of Westfield Ltd shares, Westfield Trust units, and Westfield America Trust units with stapled securities.

    Participants received Westfield Group stapled securities through either a stapling arrangement or a sale facility. They also had the option of receiving cash under the sale facility.

    The tax consequences of these transactions vary depending on whether the shareholder or unit holder chose the 'cash alternative' or 'exchange by sale alternative' or did nothing. See our fact sheets Westfield Group (Westfield): 2004 Restructure: Tax consequences for Westfield Limited shareholders; Westfield 2004 Restructure: Tax consequences for Westfield Trust unit holders; Westfield 2004 Capital Restructure: Tax consequences for Westfield America Trust unit holders.

    To obtain a copy of a fact sheet referred to in this appendix, visit our website at www.ato.gov.au or, if you do not have internet access, phone our Publications Distribution Service on 1300 720 092.

    Further fact sheets may be on our website which do not appear in this appendix.

    For more information about share transactions in earlier years, visit our website.

    Last modified: 06 Oct 2009QC 27788