What you can do with this calculator
You can use the calculator to work out the income tax effects for you as a result of Woolworths Group Limited demerger of Endeavour Group Limited on 1 July 2021.
Don't use the calculator if the taxation of financial arrangements (TOFA) rules in Division 230 of the Income Tax Assessment Act 1997 apply to you in relation to the demerger. If you're an individual, the TOFA rules will generally not apply to you unless you have made an election for them to apply.
The calculator works out the following income tax effects of the demerger:
- the cost base adjustments you must make to your Woolworths shares as a result of the demerger
- the cost bases of your Endeavour shares
- the date you acquired your Endeavour shares to work out whether a capital gain from a CGT event that later happens to them is a discount capital gain
- the resulting capital gain (if any) you must consider when working out your net capital gain or net capital loss for the 2021–22 income year
- the capital returned to you under the demerger (which is included for your interest – you do not need this to complete your 2021–22 or later tax return)
- the dividend component of the distribution to you of the Endeavour shares (included for your interest as the amount is not taxed under the demerger rules).
- if your Endeavour shares were sold through the share sale facility and the proceeds paid to you by the sale agent, the amount of your capital gain or capital loss from the sale.
The cost base adjustment only determines the first element of the cost base and reduced cost base of your Woolworths and Endeavour shares. You may have other elements that you can include that will result in you having a higher cost base and reduced cost base.
For more information, see Elements of the cost base and reduced cost base.
Using the calculator
The calculator contains two sheets:
- a data sheet that contains the data the calculator needs to work out the income tax consequences (some data is pre-filled and some you must supply)
- a sheet that displays the income tax consequences for you of the demerger (worked out using the data in the data sheet).
For the calculator to work out the correct income tax consequences, you must:
- answer between three and five questions (depending on your circumstances)
- supply information about the Woolworths shares you held at the record date.
To do this, first select the Data sheet at the bottom of the spreadsheet.
Microsoft Excel requirements
The calculator is in a Microsoft Excel spreadsheet. It does not contain any macros or scripts. You will need to open it by:
- using a compatible version of Microsoft Excel (2007 or later)
- allowing access for files downloaded from the internet.
Questions you must answer
In the data sheet there is a list of questions under the heading 'Answer the following questions', which you answer by selecting No or Yes for each question.
Are you an Australian resident?
If you are an Australian resident, you may choose to obtain a rollover. If not, you may only choose to obtain a rollover if the Endeavour shares you acquired under the demerger were 'taxable Australian property' just after you acquired them. For more information, see:
- Woolworths Group Limited – demerger of Endeavour Group Limited
- CR 2021/50 Woolworths Group Limited – demerger of Endeavour Group Limited.
Were your Endeavour shares taxable Australian property?
This question only appears if you answer ‘No’ to the question 'Are you an Australian resident? For the conditions in which your Endeavour shares were taxable Australian property just after you acquired them, see Woolworths Group Limited – demerger of Endeavour Group Limited.
Are your Woolworths shares taxable Australian property?
This question only appears if you answer ‘No’ to the question 'Are you an Australian resident?'. For the conditions in which your Woolworths shares are taxable Australian property, see:
- Woolworths Group Limited – demerger of Endeavour Group Limited
- CR 2021/50 Woolworths Group Limited - demerger of Endeavour Group Limited, paragraph 23.
Do you choose to obtain a rollover?
This question appears if you answer:
- ‘Yes’ to the question 'Are you an Australian resident?'
- ‘No’ to the question 'Are you an Australian resident but ‘Yes’ to the question 'Are your Endeavour shares taxable Australian property?'
Otherwise, the statement 'You can't choose to get a rollover’ appears.
Were your Endeavour shares sold under the sale facility?
Answer ‘Yes’ to this question if you elected to have your shares sold under the sale facility because you are either:
- an ineligible shareholder
- a small shareholder.
In either event, there will be capital gains tax consequences of the sale of your shares by the sale agent. The calculator works out the CGT consequences for you.
The terms 'Ineligible Shareholder' and 'Small Shareholder' are defined in the Woolworths demerger of Endeavour demerger booklet (PDF, 9.36MB)This link will download a file.
What you will need
First, answer the above questions that apply to you.
Then for each parcel of Woolworths shares you held at the record date, enter in the table on the data sheet the:
- number of shares in the parcel in the 'Number of shares' column
- cost base per share for the parcel in the 'Cost base or share' column.
The calculator allows you to provide information for up to 20 parcels of Woolworths shares.
This calculator does not track the cost base history of your Woolworths shares. To get accurate results, you must have records of what the cost bases of your Woolworths shares were just before the demerger. Your tax adviser may be able to give you this information.
Viewing the income tax effects of the demerger
When you finish answering the questions and filling in the information about your Woolworths shares, select the Tax consequences sheet to view the income tax consequences of the demerger for you.
Keep a copy of the completed spreadsheet for your records in either electronic or printed form. If you print it out, print both the data sheet and the tax consequences sheet.
If you make the choice to get the rollover, you can compare the options of choosing or not choosing to get it by alternating between ‘Yes’ and ‘No’ to the question ‘Do you choose to obtain a rollover?’ in the data sheet. This will show you the differing consequences in the tax consequences sheet.
See also:
- CR 2021/50 Woolworths Group Limited – demerger of Endeavour Group Limited
- Woolworths demerger of Endeavour demerger booklet (PDF, 9.36MB)This link will download a file
- Woolworths Group Limited – demerger of Endeavour Group Limited.