If you purchased shares in the Telstra 2 share offer, you would have received an 'instalment receipt' after making your first payment. The instalment receipt was issued as evidence that you owned a beneficial interest in the shares.
If you sold the instalment receipts or shares for more than the amount you paid for them, you may have to pay capital gains tax on the difference between the cost base of the instalment receipts or shares and the capital proceeds from the sale.
You will not be entitled to indexation of the cost base of the instalment receipts or shares which were purchased after 11.45am AEST on 21 September 1999.
For more information, see the publication Personal investors guide to capital gains tax.