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Smorgon Steel - OneSteel merger (2007)

Work out the tax consequences of the Smorgon Steel and OneSteel merger.

Last updated 5 October 2009

This document is for people who were shareholders in Smorgon Steel Group Limited (Smorgon) at the time of the Smorgon - OneSteel Limited (OneSteel) merger in August 2007.

You can use these instructions to work out your income tax obligations arising from the merger and update your capital gains tax (CGT) records if, at the time of the merger:

  • you were an individual taxpayer who was an Australian resident for tax purposes
  • you owned Smorgon shares that were transferred to OneSteel under the merger
  • you were not eligible (under Subdivision 130-D of the Income Tax Assessment Act 1997) to have any capital gain or capital loss disregarded - this is relevant only to shareholders who acquired their Smorgon shares under an employee share scheme - and
  • any gain or loss you made on your Smorgon shares was a capital gain or capital loss - this means that you held your shares as an investment asset rather than:
    • as trading stock
    • as part of carrying on a business, or
    • to make a short-term or one-off commercial gain.

Specifically, you will work out:

  • your capital gain or capital loss on the Smorgon shares you transferred


You may need this information for your 2007-08 income tax return

  • whether you can choose scrip-for-scrip rollover for the OneSteel shares you received
  • the CGT cost base of the OneSteel shares you received.

What happened?

Smorgon merged with the OneSteel group on 20 August 2007.

Smorgon shareholders transferred all their Smorgon shares to OneSteel. In return, they received 0.4091 OneSteel shares for each Smorgon share they had held.

Tax consequences

The transfer of Smorgon shares to OneSteel was a CGT event for the Smorgon shareholders and may affect your 2007-08 income tax return.

The instructions and worksheet will help you work out the CGT consequences of this event.