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Terms explained

Last updated 13 September 2016

Cost base and reduced cost base

Your CGT records for your PBL shares should show you your cost base and acquisition date for each parcel of PBL shares. Generally, the cost base of shares is the purchase price and any incidental costs such as transfers, stamp duties, and fees charged by consultants, accountants, lawyers or brokers.

For calculations where you have to work out a capital loss, you use reduced cost base rather than cost base. Your reduced cost base does not include indexation or certain other expenditure.

For most people your reduced cost base is the same as your cost base.

Discounted capital gain

If you work out your capital gain using the 'discount method', you reduce (or discount) it 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 do not index the cost base.

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 PBL 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.

Relevant proportion

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 column 6 of this worksheet, we have provided percentages that help you work out the 'relevant proportion' of the cost base for the cash you received for your PBL shares.

We have worked out a percentage (for one PBL share) for each of the two options that had a cash component, as follows:

       Cash amount       

  x  100

Total consideration received

The Tax Office accepts that the total consideration PBL shareholders received for each share was $20.59 (in a combination of cash and Crown shares).

If you chose the standard option, the 'relevant proportion' attributable to the cash component is worked out as:


x 100 = 14.57%



If you chose the maximum cash option, the relevant proportion attributable to the cash component is worked out as:


x 100 = 73.15%




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.

End of attention

Scrip-for-scrip rollover

'Rollover' allows you to defer your CGT obligation until a later CGT event happens to your shares. If you received shares plus cash for your original shares, you may be eligible only for partial rollover. You can only choose rollover for shares you made a capital gain on, and you must have acquired the shares on or after 20 September 1985.

Further Information

For more information and a full explanation of these terms, see the Guide to capital gains tax (NAT 4151)

End of further information