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Demergers that happen on or after 1 July 2002

Last updated 3 March 2016

If you received new interests in a demerged entity under an eligible demerger that happened on or after 1 July 2002, you need to be aware of the following CGT consequences:

  • you may be entitled to choose rollover for any capital gain or capital loss you make under a demerger, and
  • you are required to calculate the cost base and reduced cost base of your interests in the head entity and your new interests in the demerged entity immediately after the demerger.


The head entity will normally advise you whether it has undertaken an eligible demerger. The Tax Office may have provided advice to the head entity in the form of a class ruling.