Personal investors guide to capital gains tax 2003

Company

Details of transaction

AMP Ltd

Demutualisation

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

BHP Billiton Limited

Demerger

In July 2002 BHP shareholders received one BHP Steel Ltd share for every five BHP Billiton shares held. BHP Billiton has advised that BHP Steel represented 5.063% of the market value of the group as a whole just after the demerger. Shareholders who received BHP Steel shares should use this percentage to apportion the sum of the cost bases of their post-CGT BHP Billiton shares between these shares and the post-CGT BHP Steel shares.

Commonwealth Bank of Australia Ltd

Public share offer

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

For the final instalment: Indexation also applied from 13 July 1996.

CSR Limited-Rinker Group Limited

Demerger

In April 2003 CSR shareholders received one Rinker share for every CSR share they held.

CSR has advised that Rinker represented 75% of the market value of the group as a whole just after the demerger. Shareholders who received Rinker shares should use this percentage to apportion the sum of the cost bases of their post-CGT CSR shares between these shares and the post-CGT Rinker shares.

See Class Ruling CR 2003/ 10 - Income tax: Special Dividend, Capital Reduction and Related Scheme of Arrangement for the Demerger of Rinker Group Limited from CSR Limited .

Harris Scarfe Holdings Ltd

Statement was not a declaration that shares are worthless.

On 26 June 2002 the liquidators of Harris Scarfe Holdings Ltd advised shareholders they were unable to determine the amount of any return to shareholders in the winding up of the company. The liquidators have also advised that it may be some considerable time before all issues are resolved in the courts. Shareholders of Harris Scarfe cannot choose to make a capital loss until such time as the liquidators may make a declaration that satisfies CGT event G3.

HIH Insurance Ltd

Declaration shares worthless

Liquidators' written declaration made on 10 October 2001 enabled shareholders of HIH Insurance Limited to choose to make a capital loss in 2001-02 equal to the reduced cost base of the share under CGT event G3.

Insurance Australia Group (IAG) Limited

Share purchase plan

Offers opened on 4 November 2002 for shareholders to purchase shares from IAG for $2.40 per share free of brokerage and transaction costs.

There are no CGT consequences at the time of purchase. However, there are taxation consequences in relation to owning and disposing of the shares you purchase.

NRMA Insurance Group Ltd (NIGL)

Demutualisation

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

One. Tel Ltd

Declaration shares worthless

Liquidators' written declaration made on 30 May 2002 enabled shareholders of One. Tel Ltd to choose to make a capital loss in the 2001-02 year equal to the reduced cost base of the share under CGT event G3.

Pasminco Limited

Statement that shares are worthless not made by liquidator

The statement by the administrators on 4 September 2002 did not cause a CGT event G3 (liquidator declares shares worthless) to happen. Shareholders of Pasminco cannot choose to make a capital loss until such time as a liquidator may make a declaration that satisfies CGT event G3. See Class Ruling CR 2002/ 85 - Income tax: capital gains tax: CGT event G3: Pasminco Limited (subject to deed of company arrangement).

Sonic Health Care Limited - SciGen Limited

Demerger

In December 2002 Sonic shareholders received one SciGen share in the form of a CHESS Unit of Foreign Security (CUFS) for every Sonic share held.

Sonic has advised that SciGen represented 0.66% of the market value of the group as a whole just after the demerger. Shareholders who received SciGen shares should use this percentage to apportion the sum of the cost bases of their post-CGT Sonic shares between these shares and the post-CGT SciGen shares.

See Class Ruling CR 2002/ 89 - Income Tax: dividend, capital reduction and related schemes of arrangement for the demerger of SciGen Limited from Sonic Healthcare Limited.

TAB Limited

Share buy-back

On 21 March 2002 TAB Limited announced a share buy-back. The capital proceeds received were $2.35.

The amount by which the capital proceeds of $2.35 exceeds the cost base of each share will be a capital gain to the shareholder. If the share's reduced cost base exceeds $2.35, the difference will be a capital loss.

The announcement date was 21 March 2002. See Class Ruling CR 2002/16 - Income tax: share buy-back: TAB Limited.

Telstra

Public share offer 1

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

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 applied because acquisition was after 11.45am (by legal time in the ACT) on 21 September 1999. For the final instalment: Similarly, no indexation applied.

Western Mining Corporation Limited - WMC Resources Limited

Demerger

In December 2002 WMC shareholders received one WMCR share for every WMC share held. Also WMC Limited changed its name to Alumina Ltd.

Alumina has advised that WMCR represented 46.30% of the market value of the group as a whole just after the demerger. Shareholders who received WMCR shares should use this percentage to apportion the sum of the cost bases of their post-CGT Alumina shares between these shares and the post-CGT WMCR shares.

See Class Ruling CR 2002/ 81 - Income tax: capital gains: demerger roll-over relief for shareholders: demerger of WMC Ltd.

Year

Quarter ending

31 Mar.

30 Jun..

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

03.3

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*