Edited version of your private ruling

Authorisation Number: 1011948491033

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Ruling

Subject: Capital gains tax - Westfield Group restructure

Question: Are you required to apportion the tax deferred component of your distribution reinvestment plan (DRP) component received between all your units?

Answer: Yes.

This ruling applies for the following period

30 June 2011

The scheme commenced on

1 July 2010

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You acquired units in Westfield Trust prior to the company restructure in 2004.

Prior to the company restructure you held a number of Westfield Trust units and after the restructure you held a number of Westfield Group units.

You have consented to us using information obtained from the Westfield Group website in relation to the Westfield Group restructure to support your application for a ruling. This information forms part of your application for the purpose of this ruling.

Mid 2004, you received a return of capital. This took the form of a specified number of Westfield Holding (WFH) shares and a specified number of Westfield America Trust (WFA) units. These securities were then stapled together.

The cost base of the new shares and units were as follows:

Cost base of Security acquired in the Merger
	Westfield Holdings $	Westfield Trust $	Westfield America Trust $
	Security held prior to	Westfield Holdings	n/a	0.001	0.001
the merger	Westfield Trust	0.01	n/a	1.00
	Westfield America Trust	0.01	1.00	n/a

You have participated in the DRP. You acquired the stapled securities through both DRP and purchasing.

The cost base of the DRP's is as follows (this information has been obtained from the Westfield Group website):

*(1) A + B + C = D

You received the tax deferred amounts.

The Westfield Group have advised the reduction per unit is as follows:

On 20 December 2010, the Westfield Group implemented a restructure.

Each Westfield Group stapled security consists of one unit in WFT one unit in WFA and one share in WSF.

The restructure involved a capital distribution which resulted in you acquiring units in Westfield Retail Trust 1 and units in Westfield Retail Trust 2. These units were subsequently stapled together and commenced trading on the Australian Securities Exchange as Westfield Retail Trust stapled securities.

The restructure also involved a transfer of assets from Westfield Trust to Westfield Retail Trust 1 on 20 December 2010. The acquisition date of these units is 20 December 2010.

The cost base and reduced cost base of your Westfield Trust units after 20 December 2010, is 59% of the cost base and reduced cost base of each of your Westfield Trust units just before 20 December 2010.

The cost base and reduced cost base of your Westfield Retail Trust 1 units after 20 December 2010, is 41% of the cost base and reduced cost base of each of your Westfield Trust units just before 20 December 2010.

You have provided copies of the following documentation to support your application and these documents are to be read with and forms part of your application for the purpose of this ruling:

· Westfield Trust Distribution History

· Westfield Holdings Dividend History, and

· Westfield America Trust Distribution History.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 116-40

Income Tax Assessment Act 1997 Section 104-70

Income Tax Assessment Act 1997 Section 102-20

Income Tax Assessment Act 1997 Section 104-71

Reasons for decision

While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.

Tax deferred component

The tax deferred component of distributions made by trusts will reduce your cost base of the units of each trust. This reduction will apply in calculating any capital gain or capital loss on disposal of the units for capital gains tax (CGT) purposes. In addition, you make a capital gain (even if you do not dispose your units) if the sum of the tax deferred amounts received is more than the cost base of the units at the end of the income year.

You will need to adjust the cost base of each bundle of units you received by the tax deferred (cents per unit) amount as provided by the Westfield Group.

The tax deferred amount for each WFT unit and WFA unit is found in the information provided to you by the Westfield Group. Your WFH shares are not affected by any tax deferred distributions.

You use the same method of calculation as has been applied in the table above to all your WFT units and WFA units.

Westfield Group restructure in 2010

The result of this restructure affects the first element of the cost base and reduced cost base of each of your WFT units and Retail Trust 1 units.

The first element of the cost base of each of your WFT units just after 20 December 2010, is 59% of the cost base of each of your WFT units just before 20 December 2010.

We have calculated the new cost base of one of your WFT units which you acquired on

20 December 2010 as $X ($X x 5X%).

We have calculated the new cost base of one of your Retail Trust 1 units which you acquired on

20 December 2010 as $X ($X x 4X%).

You will need to adjust your cost base of all of your WFT units and Retail Trust 1 units accordingly.

For further information on these enclosed:

· Westfield Group restructure - capital distribution and dividend - creating a new stapled security (2010), and

· Class Ruling CR 2010 - Income tax: capital gains tax: Westfield Group - creating a new stapled security.