Overview
This document is for people who were Unitab Limited (Unitab) shareholders at the time of the Unitab and Tattersall's Limited (Tattersall's) merger in October 2006. Most people can use this document but there are some qualifications. See Can you use these instructions?
What happened?
As part of a 'merger of equals' between Unitab and Tattersall's, Unitab became part of Tattersall's on 12 October 2006.
Under the merger, Unitab shareholders were offered a choice of three options for the transfer of their shares to Tattersall's:
Option 
Per share 

cash ($) 
Tattersall's shares 

All shares 
 
4.33 
Maximise cash 
14.25 
 
Fixed proportion cash 
3.99 
3.1176 
Tax consequences
Transferring your Unitab shares to Tattersall's resulted in a capital gains tax (CGT) event happening to your Unitab shares.
This document will help you work out the CGT consequences of this event, specifically your:
 capital gain or capital loss (if any) on any cash you received
 capital gain or capital loss (if any) on any Tattersall's shares you received
 eligibility for scripforscrip rollover for any Tattersall's shares you received, and
 CGT cost base for any Tattersall's shares you received.
Using the instructions and worksheet
This document contains a worksheet (downloadable PDF), instructions and terms explained. Print out the worksheet so you can complete it as you go through the instructions.
You will also need your holder statement from Tattersall's, and a calculator.
Instructions
There are four sections in the worksheet. If you chose the:
 'maximise cash' option  complete sections 1 and 2
 'all shares' option  complete sections 1, 3 and 4
 'fixed proportion cash' option  complete sections 1, 2, 3 and 4.
Section 1: details of your unitab shares
If you held more than one parcel of Unitab shares before the merger, enter each parcel on the worksheet in the order you got them, oldest first.
For each parcel fill in the:
 acquisition date (column 2) (the date you got the shares)
 number of shares in the parcel (column 3), and
 cost base (just before the merger) for the parcel (column 4).
Section 2: capital gain or capital loss on cash received
In this section you work out whether you made a capital gain or capital loss as a result of receiving cash under the merger. (If you did not receive any cash, go to section 3.)
You need to work out your capital gain or capital loss because you need to include it when working out your net capital gain or capital loss for your 200607 income tax return.
End of attentionColumn 5: How much cash did you receive?
You need to know out how much cash you received to work out your capital gain.
Use the following table to work out how much cash you received for each of your parcels of Unitab shares:
Option 
Cash received 
Maximise cash 
Column 3 (number of shares) x $14.25 
Fixed proportion cash 
Column 3 (number of shares) x $3.99 
Enter the results in column 5.
Column 6: Cost base for the cash received
The cost base for the cash you received is a percentage or proportion of the cost base of your Unitab shares, which we refer to as a relevant proportion.
Work out the relevant proportion of the cost base for each parcel, using the table below:
Option 

Maximise cash 
Column 4 (cost base of parcel) x 100% 
Fixed proportion cash 
Column 4 (cost base of parcel) x 26.28% 
Enter the results in column 6.
Column 7: Capital gain or capital loss
Step 1: Capital gain
To work out if you made a capital gain on the cash received for your Unitab shares, take the cost base for the cash you received (column 6) from the cash amount you received (column 5). So for each parcel, work out:
 column 5 (cash amount received)  column 6 (cost base).
If the result is:
 positive, you have made a capital gain  enter the result in column 7 and go to column 8
You must include this capital gain amount when working out your net capital gain or capital loss for your 200607 income tax return.
End of attention zero or negative, you need to work out whether you have made a capital loss  go to step 2.
To work out whether you have a capital loss, take the relevant proportion of the reduced cost base of your Unitab shares from the cash amount you received (column 5).
For each parcel:
column 5 (cash amount received)  reduced cost base
If the result is:
 negative, you have made a capital loss
You must include the capital loss amount when working out your net capital gain or capital loss for your 200607 tax return.
End of attention zero or positive, you have neither a capital loss nor a capital gain.
Go to section 3.
Column 8: CGT discount
You can treat the capital gain as a discounted capital gainprovided that you: were an individual, complying superannuation entity or eligible trust worked out the capital gain using a cost base that had been worked out without reference to indexation at any time, and had owned your Unitab shares for at least 12 months before you disposed of them.
If you acquired your Unitab shares on or before 11 October 2005 you can use the CGT discount. If you acquired your shares after 11 October 2005, you cannot use the CGT discount.
End of attentionFor each parcel, place a 'Y' in column 8 if you are eligible for the CGT discount on your capital gain, and an 'N' if you are not. This information will help you to work out your total CGT liability for the income year.
If you chose the 'maximise cash' option, you have finished the worksheet.
Record keeping
Keep this worksheet with your CGT records.
If you chose the 'all shares' or 'fixed proportion cash' option, go to section 3.
Section 3: capital gain or capital loss on tattersall's shares
In this section you work out whether you had a capital gain or capital loss as a result of receiving Tattersall's shares under the merger.
You need to work out your capital gain or capital loss because if you had a:
 capital gain  you need to include it when working out your net capital gain or capital loss for your 200707 income tax return unless you can choose scripforscrip rollover to defer the capital gain
 capital loss  you need to include it when working out your net capital gain or net capital loss for your 200607 income tax return.
Column 9: Number of Tattersall's shares received
Check the holder statement you received from Tattersall's and enter the total number of Tattersall's shares you received in the 'Total' box at the bottom of column 9.
Use the following table to work out the number of Tattersall's shares you received for each parcel of Unitab shares:
Option 
Number of Tattersall's shares 
All shares 
Column 3 (number of Unitab shares) x 4.33 
Fixed proportion cash 
Column 3 (number of Unitab shares) x 3.1176 
Round each answer to a full number and enter the results in column 9.
Add up the figures in column 9 and compare your answer to the number you have in the total box (from your holder statement). If the figures do not match, adjust the rounding of individual parcels to make them add up to the number on your holder statement.
Your column 9 total must match the total on the holder statement you received from Tattersall's. Any adjustment you make to your individual parcels must be done on a reasonable basis.
End of attentionColumn 10: Value of Tattersall's shares
You need to know the value of the Tattersall's shares you received because you use the amount to work out whether you made a capital gain or capital loss.
We accept that the value of one Tattersall's share under the merger was $3.59.
End of attentionWork out the value of each of your parcels of Tattersall's shares:
column 9 (number of Tattersall's shares) x $3.59
Enter the results in column 10.
If you are not using rollover, you will also use these amounts for column 16.
End of attentionColumn 11: Capital gain or capital loss
Cost base of your Tattersall's shares (relevant proportion)
To work out whether you have made a capital gain or capital loss on your Tattersall's shares, you need to know their cost base. This is a percentage or proportion of the cost base of your Unitab shares, referred to as a relevant proportion. The amount will vary, depending on the option you chose.
Work out the cost base (the relevant proportion of the Unitab cost base) for each of your Tattersall's parcels, using the table below.
Option 
Relevant proportion 
All shares 
Column 4 (cost base of Unitab shares) x 100% 
Fixed proportion cash 
Column 4 (cost base of Unitab shares) x 73.72% 
Make a note of these amounts, because you will use them for column 16 if you have made a capital gain and choose rollover.
End of attentionStep 1  Capital gain
To work out if you made a capital gain on your Tattersall's shares, take the cost base you have just worked out (the relevant proportion of the cost base of your Unitab shares) from the value of your Tattersall's shares, the amount you worked out at column 10:
Column 10 (value of Tattersall's shares)  cost base of Tattersall's shares
If the result is:
To work out whether you have a capital loss, take the relevant proportion of the reduced cost base of your Unitab shares from the value of your Tattersall's shares.
Column 10 (value of Tattersall's shares)  reduced cost base of Tattersall's shares
If the result is:
 negative, you have made a capital loss
You must include the capital loss amount when working out your net capital gain or capital loss for your 200607 tax return.
End of attention zero or positive, you have made neither a capital loss nor a capital gain.
Go to section 4.
Column 12: Scripforscrip rollover
You can choose scripforscrip rollover for the part of your capital gain that relates to the receipt of Tattersall's shares.
Most Unitab shareholders will be able to, and will want to, choose scripforscrip rollover.
End of attentionIf you:
choose scripforscrip rollover, place a 'Y' in column 12, then go to section 4
do not choose scripforscrip rollover, place a 'N' in column 12 and go to column 13.
Column 13: CGT discount
If you answered 'Y' at Column 8, you can also treat this capital gain as a discounted capital gain.
if you answered 'N' at Column 8, you cannot treat this capital gain as a discounted capital gain.
For each parcel, place a 'Y' in column 13 if you are eligible for the CGT discount on your capital gain, and an 'N' if you are not. This information will help you to work out your net capital gain or capital loss for the income year.
You must include this capital gain amount when working out your net capital gain or capital loss for your 200607 tax return.
End of attentionSection 4: cost base records of your tattersall's shares
In this section you work out the cost base records of your Tattersall's shares after the merger. Complete columns 1416 for each parcel of Tattersall's shares you have.
Column 14: Acquisition date for CGT discount purposes
If you chose rollover 
If you did not choose rollover 
Copy the date from column 2 to column 14. (For the purpose of accessing the CGT discount if you later sell your Tattersall's shares, you are taken to have acquired your new Tattersall's shares on the date you acquired the corresponding Unitab shares.) 
Your acquisition date is 12 October 2006, the date of the merger. 
Column 15: Number of shares
Copy the number from column 9.
Column 16: Cost base
If you chose rollover 
If you did not choose rollover 
The relevant proportionof the cost base of your Unitab shares becomes the cost base of your Tattersall's shares. You worked this amount out before doing step1 in column 11. 
The cost base of your Tattersall's shares is the value of the Tattersall's shares you received in exchange for your Unitab shares (which you worked out at column 10). Copy the amount from column 10 into column 16. 
If you need to work your relevant proportion out again, use the table below.
Option 
Relevant proportion 
All shares 
Column 4 (cost base of Unitab shares) x 100% 
Fixed proportion cash 
Column 4 (cost base of Unitab shares) x 73.72% 
You have now finished the worksheet.
Record keeping
Keep this worksheet with your CGT records.
More information
Guide to capital gains tax (NAT 4151)
Can you use these instructions?
You can use these instructions if, at the time of the merger:
 you were an individual taxpayer who was an Australian resident for tax purposes
 you were a Unitab shareholder and your shares were transferred to Tattersall's
 you were not eligible (under Subdivision 130D of the Income Tax Assessment Act 1997) to have any capital gain you made on the shares as a result of the merger disregarded  this is relevant only to shareholders who acquired their Unitab shares under an employee share scheme
 any gain you made on your Unitab shares was a capital gain  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 shortterm or oneoff commercial gain.
Terms explained
Cost base, reduced cost base and acquisition date
Your CGT records for your Unitab shares should show you your cost base and acquisition date for each of your parcels of Unitab 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.
If 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.
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 Unitab shares on two occasions on the Australian Stock 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.
Using the worksheet will be easier if you enter your parcels of shares in the order you acquired them, starting with the oldest.
End of attentionScripforscrip rollover
'Rollover' allows you to defer your CGT obligation until a later CGT event happens to your shares. You can only choose rollover if you received Tattersall's shares in exchange for your Unitab shares, made a capital gain on the exchange of your shares, and you must have acquired the shares after 20 September 1985.
Relevant proportion
When you choose scripforscrip 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 columns 6, 11 and 16 of this worksheet, we have provided percentages that help you work out the 'relevant proportion' of your original cost base.
For each option, we have worked these percentages out by expressing the relevant new asset (that is, cash or Tattersall's shares) as a proportion of the total consideration you received for a single Unitab share. This is represented generally as:
(Cash amount) or (value of Tattersall's shares) 
x 
100 
Cash amount + value of Tattersall's shares 
'Value of Tattersall's shares' means the market value (on the date of disposal) of the Tattersall's shares you received for each Unitab share.
We accept that the market value of one Tattersall's share at the time of the merger was $3.59.
'Fixed proportion cash' option
Under the 'fixed proportion cash' option, you received 3.1176 Tattersall's shares for each individual Unitab share you disposed of. So, for you, the value of Tattersall's shares in the above formula is:
3.1176 x $3.59
= $11.19218.
We worked out the relevant proportion of the cost base attributable to the cash component under this option as follows:
$3.99 
x 
100 
= 
26.28% 
$3.99 + $11.19218 
The relevant proportion of the cost base attributable to the Tattersall's shares under this option is as follows:
$11.19218 
x 
100 
= 
73.72% 
$3.99 + $11.19218 
'Maximise cash' option
Under the 'maximise cash' option, all (100%) of the cost base of the Unitab shares is attributable to the cash component, that is, the relevant proportion is 100%.
'All shares' option
Under the all shares option, all (100%) of the cost base of the Unitab shares is attributable to the Tattersall's shares, that is, the relevant proportion is 100%.
We have provided these percentages to help shareholders work out their tax consequences on a perparcel 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 attentionMore information about these terms is in the Guide to capital gains tax (NAT 4151).
End of further information