Guide to capital gains tax 2001

All groups - weighted average of eight capital cities

Quarter ending

Year

31 March

30 June

30 Sep

31 Dec

1985

-

-

71.3

72.7

1986

74.4

75.6

77.6

79.8

1987

81.4

82.6

84.0

85.5

1988

87.0

88.5

90.2

92.0

1989

92.9

95.2

97.4

99.2

1990

100.9

102.5

103.3

106.0

1991

105.8

106.0

106.6

107.6

1992

107.6

107.3

107.4

107.9

1993

108.9

109.3

109.8

110.0

1994

110.4

111.2

111.9

112.8

1995

114.7

116.2

117.6

118.5

1996

119.0

119.8

120.1

120.3

1997

120.5

120.2

119.7

120.0

1998

120.3

121.0

121.3

121.9

1999

121.8

122.3

123.4

N/ A

Company

Details of transaction

Amcor Ltd

Non-assessable payment

On 14 April 2000 Amcor shareholders received a return of capital of $ 1.22 for each Amcor share they held. It was applied to acquire PaperlinX shares. The return of capital is a non-assessable payment, so shareholders who received PaperlinX shares should reduce the cost base and reduced cost base of their Amcor shares by $ 1.22 per share.

AMP Ltd

Demutualisation

Acquisition cost for AMP Ltd shares is $ 10.43 per share and acquisition date is 20 November 1997.

Note: Distribution from AMP Foundation Trust

In addition to their final dividend in April 2001, AMP shareholders received a distribution from the AMP Foundation Trust. The trust used the discount method to calculate its capital gain and this will be shown on shareholders' distribution notices as the full capital gain (the grossed-up amount) . Shareholders do not need to gross up the capital gain amount themselves.

BHP Ltd

Non-assessable payment

On 31 October 2000 BHP shareholders received a return of capital of 66 cents for each BHP share held. It was applied to acquire OneSteel shares.

The return of capital is a non-assessable payment, so shareholders who received OneSteel shares should reduce the cost base and reduced cost base of their BHP shares by $ 0.66 per share.

Boral Ltd

Demerger

Origin Energy Ltd (formerly called Boral Ltd) shareholders received one new Boral Ltd share for every two old Boral Ltd shares held.

Acquisition cost of the new Boral Ltd shares is $ 3.16 per share and the acquisition date is 1 March 2000.

Coca-Cola Amatil Ltd

Non-assessable payment

On 23 June 1998 Coca-Cola Amatil shareholders received a return of capital of $ 3.86 for each Coca-Cola Amatil share they held. It was applied to acquire Coca-Cola Beverages shares.

The return of capital is a non-assessable payment, so shareholders who received Coca-Cola Beverages shares should reduce the cost base and reduced cost base of their Coca-Cola Amatil shares by $ 3.86 per share

Coca-Cola Beverages Ltd

Demerger

Coca-Cola Amatil Ltd shareholders were entitled to one Coca-Cola Beverages share for each Coca-Cola Amatil share held.

Acquisition cost of Coca-Cola Beverages shares is $ 3.86 per share and the acquisition date is 23 June 1998.

Commonwealth Bank of Australia Ltd

Public share offer

For the first instalment: Acquisition date and indexation available from 13 July 1996.

For the final instalment: Indexation applies from the date of receipt by the trust of the payment due on 14 November 1997 or of the discounted sum paid earlier.

Share buy-back

The buy-back price of $ 27.84 included $ 10.00 capital proceeds and a $ 17.84 fully franked dividend. The disposal date was 2 April 2001.

Lend Lease Ltd

Share buy-back

The buy-back price of $ 19.88 included $ 7 capital proceeds and a $ 12.88 fully franked dividend. The disposal date was 2 October 2000.

NRMA Insurance Group Ltd (NIGL)

Demutualisation

Acquisition cost of NIGL shares allocated to shareholders is $ 1.78 per share. Acquisition date was 19 June 2000. For additional shares purchased through the facility, acquisition cost is $ 2.75 and acquisition date was 6 August 2000.

Share buy-back

If you sold shares that you obtained under the demutualisation, there will be no capital gains tax consequences. This is because the buy-back price was paid in June 2001 and consisted of two components:

1. capital proceeds of $ 1.78 and

2. a fully franked dividend equal to the balance of the buy-back price in excess of $ 1.78.

If you sold any of the additional shares you purchased through the facility (up to 181 shares) , you will make a capital loss. For example:

Capital proceeds $ 1.78

Reduced cost base $ 2.75

Capital loss (per share) $ 0.97

If you acquired your shares by purchasing them on the stock exchange, whether you made a capital gain or capital loss will depend on the cost base of your shares.

OneSteel Ltd

Demerger

BHP shareholders received one OneSteel Ltd share for every four BHP shares held.

Acquisition cost of OneSteel shares is $ 2.64 per share and acquisition date is 31 October 2000.

Origin Energy Ltd

Non-assessable payment

On 1 March 2000 shareholders in Origin Energy Ltd (formerly called Boral Ltd) received a return of capital of $ 3.16 for each Origin Energy share (or $ 1.58 for each old Boral Ltd share) held. It was applied to acquire the new Boral Ltd shares.

The return of capital is a non-assessable payment, so shareholders who received new Boral Ltd shares should reduce the cost base and reduced cost base of their Origin Energy shares by $ 3.16 per share.

PaperlinX Ltd

Demerger

Amcor shareholders were entitled to one PaperlinX share for every three Amcor shares they held. For each Amcor share they held, they received a return of capital of $ 1.22, which was applied to acquire PaperlinX shares.

Acquisition cost of PaperlinX shares is $ 3.66 per share and acquisition date is 14 April 2000.

Suncorp-Metway Ltd

Exchange of Series 1 Exchanging Instalment Notes (EINs)

Suncorp-Metway Ltd shares received in exchange for Series 1 EINs were acquired on 1 November 1999. Their acquisition cost is $ 8.20 per share

Telstra

Public Share Offer 1

For the first instalment: Acquisition of shares was (and indexation available from) 15 November 1997.

For the final instalment: Indexation applies from the date of receipt by the trust of the payment due on 17 November 1998.

Public Share Offer 2

For the first instalment: Date of acquisition was 22 October 1999 if the instalment receipts were purchased through the offer. No indexation applies because acquisition was after 21 September 1999.

For the final instalment: No indexation as above.

CGT event

Time of event

Capital gain

Capital loss

A1

Disposal of a CGT asset

when the disposal contract is entered into or, if none, when the entity stops being the asset's owner

capital proceeds from disposal less asset's cost bas

asset's reduced cost base less capital proceeds

CGT event

Time of event

Capital gain

Capital loss

B1

Use and enjoyment before title passes

when use of the CGT asset passes

capital proceeds less the asset's cost basee

asset's reduced cost base less capital proceeds

CGT event

Time of event

Capital gain

Capital loss

C1

Loss or destruction of a CGT asset

when compensation is first received or, if none, when the loss is discovered or destruction occurred

capital proceeds less the asset's cost base

asset's reduced cost base less capital proceeds

C2

Cancellation, surrender and similar endings

when the contract ending an asset is entered into or, if none, when an asset ends

capital proceeds from the ending less asset's cost base

asset's reduced cost base less capital proceeds

C3

End of an option to acquire shares and so on

when the option ends

capital proceeds from granting the option less expenditure in granting it

expenditure in granting the option less capital proceeds

CGT event

Time of event

Capital gain

Capital loss

D1

Creating contractual or other rights

when the contract is entered into or the right is created

capital proceeds from creating the right less incidental costs of creating the right

incidental costs of creating the right less capital proceeds

D2

Granting an option

when the option is granted

capital proceeds from the grant less expenditure to grant it

expenditure to grant the option less capital proceeds

D3

Granting a right to income from mining

when the contract is entered into or, if none, when the right is granted

capital proceeds from the grant of right less the expenditure to grant it

expenditure to grant the right less capital proceeds

CGT event

Time of event

Capital gain

Capital loss

E1

Creating a trust over a CGT asset

when the trust is created

capital proceeds from creating the trust less the asset's cost base

asset's reduced cost base less capital proceeds

E2

Transferring a CGT asset to a trust

when the asset is transferred

asset's reduced cost base less capital proceeds

capital proceeds from the transfer less the asset's cost base

E3

Converting a trust to a unit trust

when the trust is converted

market value of the asset at that time less its cost base

asset's reduced cost base less that market value

E4

Capital payment for trust interest

when the trustee makes the payment

non-assessable part of the payment less the cost base of the trust interest

no capital loss

E5

Beneficiary becoming entitled to a trust asset

when the beneficiary becomes absolutely entitled

for a trustee - market value of the CGT asset at that time less its cost base; for a beneficiary - that market value less the cost base of the beneficiary's capital interest

for a trustee - reduced cost base of the CGT asset at that time less that market value; for a beneficiary - reduced cost base of the beneficiary's capital interest less that market value

E6

Disposal to a beneficiary to end an income right

the time of the disposal

for a trustee - market value of the CGT asset at that time less its cost base; for a beneficiary - that market value less the cost base of the beneficiary's right to income

for a trustee - reduced cost base of the CGT asset at that time less that market value; for a beneficiary - reduced cost base of the beneficiary's right to income less that market value

E7

Disposal to a beneficiary to end capital interest

the time of the disposal

for a trustee - market value of the CGT asset at that time less its cost base; for a beneficiary - that market value less the cost base of the beneficiary's capital interest

for a trustee - reduced cost base of the CGT asset at that time less that market value; for a beneficiary - reduced cost base of the beneficiary's capital interest less that market value

E8

Disposal by a beneficiary of capital interest

when the disposal contract is entered into or, if none, when the beneficiary ceases to own the CGT asset

capital proceeds less the appropriate proportion of the trust's net assets

appropriate proportion of the trust's net assets less the capital proceeds

E9

Creating a trust over future property

when the entity makes an agreement

market value of the property (as if it existed when the agreement was made) less incidental costs in making the agreement

incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made)

CGT event

Time of event

Capital gain

Capital loss

F1

Granting a long term lease

for granting a lease - when the entity enters into the lease contract or, if none, at the start of the lease; for a lease renewal or extension - at the start of the renewal or extension

capital proceeds less the expenditure on grant, renewal or extension

expenditure on grant, renewal or extension less capital proceeds

F2

Granting a long term lease

for granting a lease - when the lessor grants the lease; for a lease renewal or extension - at the start of the renewal or extension

capital proceeds from the grant, renewal or extension less the cost base of the leased property

reduced cost base of the leased property less the capital proceeds from the grant, renewal or extension

F3

Lessor pays lessee to get lease changed

when the lease term is varied or waived

no capital gain

amount of expenditure to get lessee's agreement

F4

Lessee receives payment for changing a lease

when the lease term is varied or waived

capital proceeds less the cost base of lease

no capital loss

F5

Lessor receives payment for changing a lease

when the lease term is varied or waived s

capital proceeds less expenditure in relation to variation or waiver

expenditure in relation to variation or waiver less capital proceed

CGT event

Time of event

Capital gain

Capital loss

G1

Capital payment for shares

when the company pays a non-assessable amount

payment less cost base of shares

no capital loss

G2

Shifts in share values

when the shift happens

the decrease in the shares market value (so far as it has shifted into certain other shares) less the corresponding proportion of the shares' cost base

no capital loss

G3

Liquidator declares shares worthless

when the liquidator makes the declaration

no capital gain

shares' reduced cost base

CGT event

Time of event

Capital gain

Capital loss

H1

Forfeiture of a deposit

when the deposit is forfeited

deposit less expenditure in connection with the prospective sale

expenditure in connection with the prospective sale less deposit

H2

Receipt for an event relating to a CGT asset

when the act, transaction or event occurred

capital proceeds less the incidental costs

incidental costs less capital proceeds

CGT event

Time of event

Capital gain

Capital loss

I1

Individual or company stops being a resident

when the individual or company stops being an Australian resident

for each CGT asset the person owns, its market value less its cost base

for each CGT asset the person owns, its reduced cost base less its market value

I2

Trust stops being a resident trust

when the trust ceases to be a resident trust for CGT purposes

for each CGT asset the trustee owns, its market value less its cost base

for each CGT asset the trustee owns, its reduced cost base less its market value

CGT event

Time of event

Capital gain

Capital loss

J1

Company stops being a member of a wholly owned group after a roll-over

when the company stops

market value of the asset at the time of the event less its cost base

reduced cost base of the asset less that market value

J2

Change in status of a CGT asset that was a replacement asset in a roll-over under Subdivision 152-E

when the change in status happens

the amount of the capital gain that you disregarded under Subdivision 152-E

no capital loss

J3

A change happens in circumstances where a share in a company or an interest in a trust was a replacement asset in a roll-over under Subdivision 152-E

when the change in circumstances happens

the amount of the capital gain that you disregarded under Subdivision 152-E

no capital loss

CGT event

Time of event

Capital gain

Capital loss

K1

Partial realisation of an intellectual property right

when a contract is entered into or, if none, when partial realisation happens

capital proceeds from partial realisation less the cost base of the item of intellectual property

no capital loss

K2

Bankrupt pays an amount in relation to debt

when payment is made

no capital gain

that part of the payment that relates to the denied part of a net capital loss

K3

Asset passing to a tax-advantaged entity

when an individual dies

market value of the asset at death less its cost base

reduced cost base of the asset less that market value

K4

CGT asset starts being trading stock

when the asset starts being trading stock

market value of asset less its cost base

reduced cost base of asset less its market value

K5

Special capital loss from a collectable that has fallen in market value

when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable

no capital gain

market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8

K6

Pre-CGT shares or trust interest

when another CGT event involving the shares or interest happens

capital proceeds from the shares or trust interest that are attributable to a post-CGT asset owned by the company or trust, less the assets' cost bases

no capital loss

$

Interest on money borrowed

10 000

Rates and land tax

8 000

Repairs

15 000

33 000

$

Purchase price of property

150 000

Stamp duty and solicitors fees on purchase

20 000

Capital expenditure (initial repairs)

2 500

Capital expenditure (major structural repairs)

30 000

Real estate agents fees and solicitors fees

12 500

215 000

$

Proceeds from selling the house

500 000

Cost base unindexed

215 000

285 000