This document contains links to documents detailing events affecting listed investments (shares, units and stapled securities) where a significant number of investors may be impacted.
UGL Limited: Return of capital
On 14 November 2014, UGL resolved that it will return capital to shareholders who held UGL shares at close of business on 20 November 2014. The return of capital of $2.94 per share was paid on 27 November 2014. The return of capital to shareholders is not a dividend.
The payment of an unfranked dividend ($0.06 cents per share) on 27 November 2014 is assessable income.
The class ruling describes the capital gains tax (CGT) consequences of the return of capital.
- CR 2015/35 Income tax: return of share capital: UGL Limited
Wesfarmers Limited: return of capital
In December 2014 Wesfarmers paid a distribution to shareholders of $1.00 per share comprising of a return of capital of $0.75 cents per share (the capital component) and a fully franked special dividend of $0.25 per share (the dividend component).
The dividend component of the distribution is assessable income.
The capital component of the distribution is not ordinary income or a dividend.
The class ruling describes the CGT consequences of the return of capital.
- CR 2014/76 Income tax: Capital management distribution: Wesfarmers Limited
BHP Billiton Limited – demerger of South32
On 24 May 2015, BHP carried out a demerger of all the shares in its wholly owned subsidiary, South32 Limited (South32). BHP shareholders received 1 South32 share for each BHP share they held as of 20 May 2015. As a result of the demerger, BHP shareholders will hold shares in both BHP and South32.
As a BHP shareholder, the demerger resulted in a CGT event happening to your shares on 24 May 2015.
If you are a resident, you must:
Decide whether you want to choose demerger rollover relief. If you choose demerger rollover relief, you can disregard any capital gain or loss you make on your BHP shares under the demerger.
Recalculate the cost base and reduced cost base of your BHP and South32 shares.
The class ruling provides further details to assist you when recalculating the cost base and reduced cost base of your BHP and South32 shares.
- CR 2015/40 Income tax: demerger of South32 by BHP Billiton Limited
Restructure of AusNet Services – de-stapling of securities
On 18 June 2015, AusNet Services undertook a simplification and restructure of its triple-stapled securities.
Prior to the restructure, a holder of an AusNet Services stapled security held:
- 1 share in AusNet Services Distribution (Distribution)
- 1 share in AusNet Services Transmission (Transmission), and
- 1 unit in AusNet Services Finance Trust (Finance Trust)
which are stapled together.
As an AusNet Services security holder, you received 1 ordinary share in NewCo for every AusNet stapled security you held prior to the restructure.
The restructure resulted in CGT event A1 happening on the disposal of your Distribution shares, Transmission shares and Finance Trust units to NewCo.
If you are a resident, you must:
- Decide if you choose rollover relief for the exchange of your shares in Transmission, units in Finance Trust and shares in Distribution for NewCo shares. If you choose rollover relief, you can disregard any capital gain or loss made.
- Calculate the cost base of your NewCo shares.
The class ruling describes the CGT consequences of the restructure.
- CR 2015/45 Income tax: Restructure of AusNet Services
Further information on other events is also available here:
- CR 2015/21 Income tax: bonus share plan: Whitefield Limited to determine the cost base of the bonus shares
- CR 2014/85 Income tax: Macquarie Bank Atlas Roads International Limited: Return of Capital for the CGT consequences of the return of capital
- CR 2014/96 Income tax: Multiplex Development and Opportunity Fund - Return of capital (As at 26 November 2014) for the CGT consequences if you were affected by this return of capital