If you acquired, or are taken to have acquired, your MSF member shares before 20 September 1985, you have a pre-CGT asset. Although pre-CGT assets are not generally subject to capital gains tax, special rules (CGT event K6) apply to pre-CGT shares in a company if 75% or more of the company's net value is made up of post-CGT property. In these circumstances, a capital gain (but not a capital loss) may arise at the time another CGT event happens to your pre-CGT shares, because of the special rules in CGT event K6.
In the case of MSF, more than 75% of the company's net value consisted of post-CGT property on the implementation date. As a consequence you may have a capital gain when you exchanged your pre-CGT MSF member shares on 17 September 2009 for MyState shares.
As a general rule, you acquired, or are taken to have acquired, your MSF member shares before 20 September 1985 if:
- you became a member of MSF* itself before 20 September 1985, or
- you acquired shares or membership interests in a credit union before 20 September 1985 that was taken over by MSF before 20 September 1985.
Note: MSF was previously known as Connect Credit Union, Savings and Loans Credit Union Cooperative, and Tasmanian Public Service Savings and Loans Cooperative Society.End of attention
If you acquired your MSF member shares when another credit union in which you held a member share was taken over by MSF (for example, Island State Credit Union or CPS Credit Union) and the takeover happened on or after 20 September 1985, your shares in MSF will be post-CGT assets. You should refer to the information in this fact sheet about the disposal of post-CGT MSF member shares to work out your capital gain.