What are the capital gains tax consequences for me?

A capital gains tax (CGT) event happened on 19th December 2005, when Westpac accepted your offer of shares for buy-back.

The capital proceeds you are deemed to have received is $5.18 for each Westpac share that was bought back.

You may have made a capital gain or a capital loss on your Westpac shares, depending on their cost base (or reduced cost base) and the amount you received for them.

Work out if you have made a capital gain or capital loss using the capital payment amount of $5.18 (see note below) you are deemed to have received for each share. The following table will help you.

For each Westpac share with a:

you have made:

equal to:

cost base of less than $5.18*

a capital gain

$5.18* minus the cost base of the share.

reduced cost base of more than $5.18*

a capital loss

the reduced cost base of the share minus $5.18*.


* For capital gains tax purposes, participants in the buy-back are deemed to have received $5.18 as the capital component of the buy-back price. See Class Ruling CR 2006/6 - Income tax: off-market share buy-back: Westpac Bank Limited for more details.

If your cost base is not less than $5.18 and your reduced cost base is not more than $5.18, you have made neither a capital gain nor a capital loss on the share buy-back. There is nothing you need to include on your 2005-06 tax return regarding this sale.

For information on how to work out the cost base and reduced cost base for shares, see the Guide to capital gains tax.

    Last modified: 14 Dec 2007QC 18802