Step 1 Cost base
It is up to you to work out the cost base of your Woolworths shares, just as you would if you were selling your shares and had to work out what they cost you.
The cost base of your shares will depend on the way you acquired them. Some examples are:
- as a gift or inheritance
- under an ESS
- as replacement shares.
Incidental costs such as brokerage are included in the cost base. The cost base may also be affected by various capital gains tax events.
If you make a capital loss when you dispose of your shares, you need to calculate the reduced cost base instead of the cost base.
Step 2 Adjusted cost base
When you have worked out the cost base for each of your Woolworths shares, subtract $0.14598558. The result is the adjusted cost base of each of your Woolworths shares.
You cannot reduce the cost base below nil. If subtracting $0.14598558 results in a negative amount, the cost base of each Woolworths share becomes nil and the excess is a capital gain.
If you have owned your Woolworths shares for more than 12 months you can reduce the capital gain by the 50% CGT discount (after first applying any net capital losses you have).