Rollover allows you to defer your CGT obligation until a later CGT event happens to your shares or CDIs. If you received shares or CDIs plus cash for your ABB Grain shares, you may only be eligible for partial rollover. You can only choose rollover for shares you made a capital gain on, and you must have acquired the shares after 20 September 1985.
For more information and a full explanation of these terms, see the Guide to capital gains tax (NAT 4151).
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Cost base and acquisition date
Your CGT records for your ABB Grain shares should show your cost base and acquisition date (the date you got your shares) for each parcel of ABB Grain shares. Generally, the cost base of shares is the purchase price and any incidental costs, such as transfer fees and stamp duties, and fees charged by consultants, accountants, lawyers or brokers.
If you acquired ABB Grain shares when the Australian Barley Board privatised on 1 July 1999 or when ABB Grain merged with AusBulk Ltd and United Grower Holdings Ltd on 27 September 2004 and need to know the acquisition date or cost of those shares, refer to the ABB Grain website or the Viterra website.
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Discounted capital gain
If you work out your capital gain using the 'discount method', you reduce (or discount) the capital gain using the 'CGT discount'. The result is referred to as a 'discounted capital gain'. If you use the discount method to work out your capital gain, you cannot index the cost base.
The discount percentage is the percentage by which you discount your capital gain after you have applied all the capital losses for the income year and any unapplied net capital losses from earlier years.
The discount percentage is 50% for individuals and trusts, and 33% for complying superannuation entities and eligible life insurance companies.
Parcel of shares
If you acquire more than one share on a particular date for a particular price, we refer to those shares as a parcel of shares. For example, you may have bought ABB Grain shares on two occasions on the Australian Securities Exchange (ASX). Each of these acquisitions is a separate parcel.
Although each share is a separate CGT asset, it is usually more convenient to work out the CGT consequences for each parcel of shares.
Using the worksheet will be easier if you enter your parcels of shares in the order you acquired them, starting with the oldest.
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When you choose scrip-for-scrip rollover, you must allocate your original cost base across your new assets on a proportional basis. We refer to each allocation as a relevant proportion of your original cost base.
In the instructions for columns 6, 11 and 14 of this worksheet, we have provided the percentages that you need to work out the relevant proportion of your original cost base.
For the standard option, we have worked the percentages out by expressing the relevant new asset (that is, cash, Viterra shares or Viterra CDIs) as a proportion of the total consideration received for a single ABB Grain share. For the maximum scrip option, the percentages are based on the percentage of your ABB Grain shares for which you received the relevant new asset under the scale back.
We have provided these percentages to help shareholders work out their tax consequences on a per-parcel basis, to allow for different cost bases for different parcels of shares. We will accept values that have been worked out in accordance with the methods in our worksheets and the associated class ruling.
Values worked out using other methods may differ due to rounding of the consideration you received.
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