• Event summaries

    AMP Limited (return of capital)

    What happened

    • AMP Limited (AMP) made a capital return of 40 cents per share in June 2005
       
    • The record date for entitlement to the capital return was 26 May 2005
       
    • The payment date for the capital return was 16 June 2005

    Capital gains tax (CGT) implications

    For shares that you owned at record date and still owned at payment date.

    • For each share that had a cost base equal to or more than $0.40, you must reduce the cost base and reduced cost base by $0.40.
       
    • For each share that had a cost base of less than $0.40
      • you made a capital gain equal to the difference between the cost base and $0.40 ($0.40 minus the cost base), and
         
      • you must reduce the cost base and reduced cost base of each share to nil.
       

    For shares that you owned at record date but no longer owned at payment date.

    • The return of capital is a CGT event that is separate from the disposal of your shares.
       
    • You made a capital gain of $0.40 per share on the return of capital.
       
    • If you acquired the shares on or before 15 June 2004, you may qualify for a discount capital gain on the return of capital.

    Where to find more information

    Ansell Limited (share buy-back)

    What happened

    • In December 2004, Ansell Limited (Ansell) completed an off-market share buy-back
       
    • Shareholders received capital proceeds of $9.20 for each share Ansell bought back. There was no dividend component in the price paid

    Tax implications

    For capital gains tax purposes:

    • You made a capital gain if the cost base for your shares was less than $9.20 per share.
       
    • You made a capital loss if the reduced cost base for your shares was greater than $9.20 per share.
       
    • The disposal date of your shares was 13 December 2004.

    Where to find more information

    Austral Coal Ltd (Austral) (takeover by Centennial Coal Company Ltd)

    What happened

    • Between 9 March 2003 and 22 April 2005, Centennial Coal Company Ltd (Centennial) made a takeover offer for Austral
       
    • Shareholders who accepted the offer received 10 Centennial shares for every 37 Austral shares that they held
       
    • Centennial declared the offer for Austral shares unconditional on 23 March 2005

    Tax implications

    For capital gains tax purposes: Scrip-for-scrip rollover

    Scrip for scrip roll-over is available to Austral shareholders who accepted this takeover offer.

    If you do not choose the scrip-for-scrip rollover the following will apply.

    • You made a capital gain on each Austral share for which you had a cost base of less than the value of the Centennial shares (on the disposal date) received in exchange for it.
       
    • You made a capital loss on each Austral share for which you had a reduced cost base greater than the value of the Centennial shares (on the disposal date) received in exchange for it.
       
    • The disposal date of the shares was
      • 23 March 2005 for shareholders who accepted the offer up to and including 23 March 2005, or
      • for shareholders who accepted the offer after 23 March 2005 - the date you sent in your acceptance and not the date you received payment from Centennial.
       

    The offer closed on 22 April 2005.

    Where to find more information

    Phone us on 13 28 61.

    Australian Gas Light Company (return of capital)

    What happened

    • Australian Gas Light Company (AGL) made a capital return of 50 cents per share in April 2005
       
    • The record date for entitlement to the capital return was 13 April 2005
       
    • The payment date for the capital return was 29 April 2005

    Capital gains tax implications

    For shares that you owned at record date and still owned at payment date.

    • For each share that had a cost base equal to or more than $0.50, you must reduce the cost base and reduced cost base by $0.50.
       
    • For each share that had a cost base of less than $0.50
      • you made a capital gain equal to the difference between the cost base and $0.50 ($0.50 minus the cost base), and
         
      • you must reduce the cost base and reduced cost base of each share to nil.
       

    For shares that you owned at record date but no longer owned at payment date.

    • The return of capital is a CGT event that is separate from the disposal of your shares.
       
    • You made a capital gain of $0.50 per share on the return of capital.
       
    • If you acquired the shares at least 12 months before the payment of the capital amount, you may qualify for a discount capital gain on the return of capital.
       

    For more information, read paragraphs 54 to 60 of Class Ruling CR 2005/23 (Withdrawn): Income tax: return of capital: The Australian Gas Light Company.

    Where to find more information

    Australian Kaolin Limited (declaration that shares are worthless)

    What happened

    • Australian Kaolin Limited was put into administration on 10 May 1999
       
    • On 15 November 2004, the liquidator for Australian Kaolin announced that there will be no return to shareholders of the company due to the lack of assets

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • You may claim a capital loss on your Australian Kaolin shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your Australian Kaolin shares on 15 November 2004.

    Where to find more information

    BHP Billiton Limited (share buy-back)

    What happened

    • In November 2004, BHP Billiton Limited (BHP Billiton) completed an off-market share buy-back
       
    • You received $12.57 for each share BHP Billiton bought back from you, made up of
      • a fully franked dividend of $10.47, and
         
      • capital proceeds of $2.10*
       

    * The ATO has determined that, for capital gains tax purposes, you are deemed to have received capital proceeds of $4.04 per share.

    Tax implications

    For income tax purposes:

    You must include the dividend in your assessable income for the year ended 30 June 2005. Also include the franking credit if you are entitled to claim it.

    For capital gains tax purposes:

    • You made a capital gain on each share for which you had a cost base of less than $4.04.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $4.04.
       
    • The disposal date of your shares was 23 November 2004.

    Where to find more information

    BlueScope Steel Limited (share buy-back)

    What happened

    • In April 2005, BlueScope Steel Limited (BlueScope) completed an off-market share buy-back
       
    • You received $7.75 for each share BlueScope bought back from you, made up of
      • a fully franked dividend of $4.68, and
         
      • capital proceeds of $3.07*
       

    * The ATO has determined that, for capital gains tax purposes, you are deemed to have received capital proceeds of $4.79 per share.

    Tax implications

    For income tax purposes:

    You must include the dividend in your assessable income for the year ended 30 June 2005. Also include the franking credit if you are entitled to claim it.

    For capital gains tax purposes:

    • You made a capital gain on each share for which you had a cost base of less than $4.79.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $4.79.
       
    • The disposal date of your shares was 12 April 2005.

    Where to find more information

    Burswood Ltd (takeover by PBL)

    What happened

    • Between late April and 2 September 2004, Publishing and Broadcasting Limited (PBL) made a takeover offer for Burswood Ltd (Burswood)
       
    • PBL declared the offer unconditional on 23 July 2004
       
    • Burswood shareholders who accepted the offer received $1.36 cash for each Burswood share
       
    • They also received a special dividend of $0.10 per share during the takeover period
       
    • PBL commenced compulsory acquisition of all remaining shares in Burswood in September 2004

    Tax implications

    For income tax purposes you must include the dividend in your assessable income for the year ended 30 June 2005. Also include any franking credit you are entitled to claim.

    For capital gains tax purposes:

    • You made a capital gain on each share for which you had a cost base of less than $1.36.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $1.36.
       
    • The disposal date of the shares was
      • if you accepted the offer up to and including 23 July 2004 - 23 July 2004
         
      • if you accepted the offer between 24 July and close of business (COB) 2 September 2004 - the date you accepted the offer, or
         
      • if you did not accept the offer by COB 2 September 2004 - the date that your shares were compulsorily acquired.
       

    Where to find more information

    Phone us on 13 28 61.

    Coles Myer Limited (Coles Myer) (share buy-back)

    What happened

    • In May 2005 Coles Myer Limited (Coles Myer) completed an off-market share buy-back
       
    • You received $8.30 for each Coles Myer share bought back from you, made up of
      • a fully franked dividend of $5.30, and
         
      • capital proceeds of $3.00*
       

    * The ATO has determined that, for capital gains tax purposes, you are deemed to have received capital proceeds of $3.84 per share.

    Tax implications

    For income tax purposes:

    You must include the dividend in your assessable income for the year ended 30 June 2005. Also include the franking credit if you are entitled to claim it.

    For capital gains tax purposes:

    • You made a capital gain on each share for which you had a cost base of less than $3.84.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $3.84.
       
    • The disposal date of your shares was 23 May 2005.

    Where to find more information

    Denehurst Limited (declaration that shares are worthless)

    What happened

    • Denehurst Limited was put into administration on 9 March 1998
       
    • On 2 May 2005, the administrator for Denehurst announced that there is no likelihood that shareholders in the company will receive any further distribution for their shares

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • You may claim a capital loss on your Denehurst shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your Denehurst shares on 2 May 2005.

    Where to find more information

    Henderson (formerly HHG) plc (capital restructure)

    What happened

    • In April 2005, HHG plc restructured
       
    • Under the restructure, HHG undertook a capital reduction in two parts
      • In the first part, 52 out of every 100 CDIs that you held were cancelled; you received $1.34585 for each CDI cancelled in this part.
         
      • In the second part, shareholdings were reduced to a multiple of 500 CDIs (if you had less than 500 CDIs, all were cancelled). You received $1.56608 for each CDI cancelled in this part.
       

    Tax implications

    For capital gains tax purposes:

    • You made a capital gain if the cost base for your CDIs was less than the amount that you received for their cancellation.
       
    • You made a capital loss if the reduced cost base for your CDIs was greater than the amount that you received for their cancellation.
       
    • The disposal date of your CDIs is in April 2005.

    Where to find more information

    ION Limited (declaration that shares are worthless)

    What happened

    • ION Limited (ION) was put into administration on 7 December 2004
       
    • On 15 June 2005, the administrator for ION announced that there is no likelihood that shareholders in the company will receive any further distribution for their shares

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • You may claim a capital loss on your ION shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your ION shares on 15 June 2005.

    Where to find more information

    News Corporation (capital restructure)

    What happened

    • On 12 November 2004, The News Corporation Limited (Australia) (TNCL) entered a scheme of arrangement under which their shareholders exchanged their TNCL shares for equivalent interests in News Corporation Inc (USA) (NC)
       
    • TNCL shareholders had a choice of receiving either one NC share or one NC CDI for every two TNCL shares that they owned
       
    • In either case, the value of the consideration shareholders received was equivalent to $11.64 for each TNCL ordinary share surrendered

    Tax implications

    For capital gains tax purposes:

    Scrip-for-scrip rollover is available on the exchange of either NC shares or NC CDIs for TNCL shares.

    In the absence of the scrip-for-scrip rollover:

    • You made a capital gain if the cost base for each of your ordinary shares was less than $11.64.
       
    • You made a capital loss if the reduced cost base for each of your ordinary shares was greater than $11.64.
       
    • The disposal date of your shares is 12 November 2004.

    Where to find more information

    Pasminco Limited (declaration that shares are worthless)

    What happened

    • Pasminco Limited (Pasminco) was put into administration on 19 September 2001
       
    • On 31 March 2005, the administrator for Pasminco announced that there is no likelihood that shareholders in the company will receive any further distribution for their shares

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • If you have not already done so, you may claim a capital loss on your Pasminco shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your Pasminco shares on 31 March 2005.

    Note:

    If you acquire Pasminco shares under an employee share, you may not be entitled to a capital loss.

    Where to find more information

    Promina Group Limited (return of capital)

    What happened

    • Promina Group Limited (Promina) made a capital return of 23 cents per share in June 2005
       
    • The record date for entitlement to the capital return was 9 June 2005
       
    • The payment date for the capital return was 20 June 2005

    Capital gains tax implications

    For shares that you owned at record date and still owned at payment date.

    • For each share that had a cost base equal to or more than $0.23, you must reduce the cost base and reduced cost base by $0.23.
       
    • For each share that had a cost base of less than $0.23
      • you made a capital gain equal to the difference between the cost base and $0.23 ($0.23 minus the cost base), and
         
      • you must reduce the cost base and reduced cost base of each share to nil.
       

    For shares that you owned at record date but no longer owned at payment date.

    • The return of capital is a CGT event that is separate from the disposal of your shares.
       
    • You made a capital gain of $0.23 per share on the return of capital.
       
    • If you acquired the shares on or before 19 June 2004, you may qualify for a discount capital gain on the return of capital.

    Where to find more information

    Rio Tinto Limited (share buy-back)

    What happened

    • In May 2005, Rio Tinto Limited (Rio Tinto) completed an off-market share buy-back
       
    • You received $36.70 for each share Rio Tinto bought back from you, made up of
      • a fully franked dividend of $32.70, and
         
      • capital proceeds of $4.00*
       

    * For capital gains tax purposes, you are deemed to have received capital proceeds of $6.44 per share.

    Tax implications

    For income tax purposes

    You must include the dividend in your assessable income for the year ended 30 June 2005. Also include the franking credit if you are entitled to claim it.

    For capital gains tax purposes

    • You made a capital gain on each share for which you had a cost base of less than $6.44.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $6.44.
       
    • The disposal date of your shares was 9 May 2005.

    Where to find more information

    Sons of Gwalia Limited (declaration that shares are worthless)

    What happened

    • Sons of Gwalia Limited (Sons of Gwalia) was put into administration on 30 August 2004
       
    • On 7 June 2005, the administrator for Sons of Gwalia announced that there is no likelihood that shareholders in the company will receive any further distribution for their shares

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • You may claim a capital loss on your Sons of Gwalia shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your Sons of Gwalia shares on 7 June 2005.

    Note:

    If you acquire Son of Gwalia shares under an employee share, you may not be entitled to a capital loss.

    Where to find more information

    Southcorp Ltd (takeover by Fosters)

    What happened

    • In early 2005, Fosters Limited made a takeover offer for Southcorp Limited
       
    • Shareholders received $4.26 cash for each Southcorp share they held
       
    • Fosters declared the takeover offer unconditional on 11 May 2005
       
    • Fosters commenced compulsory acquisition of all remaining shares in Southcorp on 6 June 2005

    Tax implications

    For capital gains tax purposes

    • You made a capital gain on each share for which you had a cost base of less than $4.26.
       
    • You made a capital loss on each share for which you had a reduced cost base of greater than $4.26.
       
    • The disposal date of the shares was
      • if you accepted the offer up to and including 11 May 2005 - 11 May 2005
         
      • if you accepted the offer between 11 May and 3 June 2005 - the date you accepted the offer, or
         
      • if you did not accept the offer by 3 June 2005 - the date (in the 2005-06 income year) that your shares were compulsory acquired.
       

    Where to find more information

    Phone us on 13 28 61.

    Stockford Limited (declaration that shares are worthless)

    What happened

    • Stockford Limited (Stockford) was put into administration on 23 February 2003
       
    • On 28 June 2005, the administrator for Stockford announced that there is no likelihood that shareholders in the company will receive any further distribution for their shares

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • You may claim a capital loss on your Stockford shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your Stockford shares on 28 June 2005.

    Where to find more information

    Tab Limited (takeover by Tabcorp)

    What happened

    • Between 21 April 2004 and 13 August 2004, Tabcorp Limited Tabcorp) made a takeover offer for Tab Limited (Tab)
       
    • Tab shareholders who accepted the offer received $2.10 cash plus 0.2 Tabcorp shares for each Tab share
       
    • Tab shareholders who did not accept the offer before 7.30 pm Eastern Standard Time (EST) on 13 August 2004, had their shares compulsorily acquired on 20 September 2004. They received the same consideration as accepting shareholders

    Tax implications

    For capital gains tax purposes:

    Rollover relief

    • Partial scrip-for-scrip rollover is available.
       
    • Rollover relief is not available for the cash amounts received.
       
    • The disposal date of the shares was
      • if you accepted the offer up to and including 5 July 2004 - 5 July 2004
         
      • if you accepted the offer between 5 July and 7.30 pm EST 13 August 2004 - the date you accepted the offer, or
         
      • if you did not accept the offer by 7.30 pm EST 13 August 2004 - 20 September 2004 (the date that your shares were compulsory acquired).
       

    Where to find more information

    Telstra Corporation (share buy-back)

    What happened

    • In November 2004, Telstra Corporation (Telstra) completed an off-market share buy-back
       
    • You received $4.05 for each share Telstra bought back from you, made up of
      • a fully franked dividend of $2.55, and
         
      • capital proceeds of $1.50*
       

    * The ATO has determined that, for capital gains tax purposes, you are deemed to have received capital proceeds of $2.25 per share.

    Tax implications

    For income tax purposes:

    You must include the dividend in your assessable income for the year ended 30 June 2005. Also include the franking credit if you are entitled to claim it.

    For capital gains tax purposes:

    • You made a capital gain on each share for which you had a cost base of less than $2.25.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $2.25.
       
    • The disposal date of your shares was 14 November 2004.

    Where to find more information

    Vanguard Petroleum NL (declaration that shares are worthless)

    What happened

    • Vanguard Petroleum NL (Vanguard) was suspended from trading on the Australian Stock Exchange on 26 November 1997
       
    • On 1 June 2005, the liquidator for Vanguard announced that there is no likelihood that shareholders in the company will receive any further distribution for their shares

    Tax implications

    For capital gains tax purposes:

    CGT event G3

    • You may claim a capital loss on your Vanguard shares in the 2004-05 income year.
       
    • The amount of the capital loss that you can claim is the reduced cost base of your Vanguard shares on 1 June 2005.

    Where to find more information

    Virgin Blue Ltd (takeover by Patrick)

    What happened

    • Between 14 February and 1 April 2005, Patrick Limited made a takeover offer for Virgin Blue Limited
       
    • Shareholders who accepted the offer received $1.90 cash for each Virgin Blue share they held
       
    • The offer from Patrick Limited closed on the Friday 1 April 2005

    Tax implications

    For capital gains tax purposes

    • You made a capital gain on each share for which you had a cost base of less than $1.90.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $1.90.
       
    • The disposal date of the shares was the date you accepted the offer.

    Where to find more information

    Phone us on 13 28 61.

    Westfield Group (capital restructure)

    What happened

    • In July 2004, Westfield Holding Ltd (WSF) shares, Westfield Trust (WFT) units, and Westfield America Trust units (WFA) were stapled together in a merger
       
    • WSF, WFT and WFA investors who participated in the merger received Westfield Group stapled securities. Investors who did not participate received cash under the sale facility
       
    • The tax consequences depend on whether the share or unit holder chose the 'cash alternative', the 'exchange by sale alternative', or did nothing (these investors received a non-assessable payment which was used to acquire new securities)

    Where to find more information

    WMC Resources Ltd (takeover by BHP Billiton)

    What happened

    • In March 2005 BHP Billiton Limited made a takeover offer for WMC Resources Limited (WMC)
       
    • Shareholders received $7.85 cash for each WMC share they held
       
    • BHP Billiton declared the takeover offer unconditional on 3 June 2005
       
    • BHP Billiton commenced compulsory acquisition of all remaining shares in WMC on 17 June 2005

    Tax implications

    For capital gains tax purposes

    • You made a capital gain on each share for which you had a cost base of less than $7.85.
       
    • You made a capital loss on each share for which you had a reduced cost base greater than $7.85.
       
    • The disposal date of the shares was
      • if you accepted the offer up to and including 3 June 2005 - 3 June 2005
         
      • if you accepted the offer between 4 June and 17 June 2005 - the date you accepted the offer, or
         
      • if you did not accept the offer by 17 June 2005 - the date (in the 2005-06 income year) that your shares were compulsory acquired.
       

    Where to find more information

    Phone us on 13 28 61.

      Last modified: 09 Jun 2006QC 18216