Personal investors guide to capital gains tax 2005

Company

Details of transaction

AMP Ltd

Demutualisation

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

Demerger

In December 2003 the UK operations of AMP (referred to as 'HHG') were demerged from AMP. There were tax consequences from the demerger for shareholders in 2003-04 which are set out in our fact sheet AMP Group demerger: How it affects Australian resident shareholders. You can also work out the cost base of AMP and HHG shares after the demerger using the fact sheet or the AMP LTD Demerger calculator on our website.

If you used the AMP demerger calculator before December 2004, your 'AMP shares - cost base report' may be incorrect if, in the calculation, your two largest share parcels appear one after the other in the report and the difference between the two share parcels is 10 shares or less. See AMP demerger .

2005 return of capital

On 16 June 2005, AMP made a return of capital to shareholders of $0.40 per share.

Shareholders needed to reduce the cost base and reduced cost base of each share by $0.40. For each share that had a cost base of less than $0.40, the difference was a capital gain in 2004-05.

See our fact sheet AMP 2005 return of capital .

Australian Co-operative Foods Ltd

Restructure

On 29 June 2004, Australian Co-operative Foods Ltd undertook a restructure which involved a number of steps, including its members receiving shares in Dairy Farmers Milk Co-operative Ltd.

The CGT consequences are set out in our fact sheet 2004 Australian Co-operative Foods Ltd restructure .

Australian Gas Light Company Ltd (AGL)

Return of capital

On 29 April 2005, AGL made a return of capital to shareholders of $0.50 per share.

Shareholders needed to reduce the cost base and reduced cost base of each share by $0.50. For each share that had a cost base of less than $0.50, the difference was a capital gain in 2004-05.

See our fact sheet Australian Gas Light Company (AGL) 2005 return of capital .

Bank of Western Australia

Takeover

During September 2003, HBOS plc acquired all shares in Bank of Western Australia. Minority shareholders received $4.25 per share.

The shares were disposed of on or about 11 September 2003.

If the capital proceeds of $4.25 were more than the cost base of the share, the difference was a capital gain in 2003-04. If $4.25 was less than the share's reduced cost base, the difference was a capital loss.

BHP Billiton Limited

Demerger

In July 2002 BHP shareholders received one BHP Steel Ltd share for every five BHP Billiton shares held. In November 2003 BHP Steel Limited changed its name to BlueScope Steel Limited.

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 BHP Steel shares they received in relation to those post-CGT BHP Billiton shares.

The fact sheet 2002 BHP Billiton Group demerger and the demergers calculator on our website will help you work out the cost bases of your BHP Billiton and BlueScope shares after the demerger.

2004 share buy-back

On 23 November 2004, BHP Billiton completed an off-market share buy-back. Shareholders who took part in the buy-back received $12.57 per share, which included a fully franked dividend of $10.47 per share.

For capital gains tax purposes, they are taken to have received $4.04 per share.

The date the shares were sold under the buy-back was 23 November 2004.

If the capital proceeds of $4.04 were more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $4.04 was less than the share's reduced cost base, the difference is a capital loss.

See our fact sheet BHP Billiton 2004 off-market share buy-back .

BlueScope Steel Ltd

2005 share buy-back

In February 2005, BlueScope Steel Ltd (formerly BHP Steel Ltd) announced a share buy-back. Shareholders who took part in the buy-back received $7.75 per share, which included a fully franked dividend of $4.68 per share.

For capital gains tax purposes, they are taken to have received $4.79 per share.

The date the shares were sold under the buy-back was 12 April 2005.

If the capital proceeds of $4.79 was more than the cost base of the share, the difference was a capital gain to the shareholder in 2004-05. If $4.79 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet BlueScope Steel: 2005 off-market share buy-back .

Coles Myer Ltd

Share sale facility

Between 15 March and 23 April 2004, Coles Myer made a share sale facility available to shareholders who had 800 shares or less.

If the capital proceeds were more than the cost base of the share, the difference was a capital gain to the shareholder in 2003-04. If the capital proceeds were less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Coles Myer Limited 2004 share sale facility .

2005 share buy-back

On 17 March 2005, Coles Myer announced a share buy-back. Shareholders who took part in the buy-back received $8.30 per share, which included a fully franked dividend of $5.30 per share.

For capital gains tax purposes, they are taken to have received $3.84 per share.

The date the shares were sold under the buy-back was 23 May 2005.

If the capital proceeds of $3.84 were more than the cost base of the share, the difference was a capital gain to the shareholder in 2004-05. If $3.84 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Coles Myer 2005 off-market share buy-back .

Commonwealth Bank of Australia Ltd

Public share offer

The Commonwealth Bank public shares were acquired on 13 July 1996. For shareholders who use the indexation method in calculating their capital gain, they index their first and final instalments from 13 July 1996.

2004 share buy-back

In March 2004, the Commonwealth Bank announced a general share buy-back. Shareholders who took part in the buy-back received $27.50 per share, which included a fully franked dividend of $16.50 per share.

For capital gains tax purposes, they are taken to have received $13.92 per share.

The date the shares were sold under the buy-back was 29 March 2004.

If the capital proceeds of $13.92 were more than the cost base of the share, the difference was a capital gain to the shareholder in 2003-04. If $13.92 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Commonwealth Bank of Australia Ltd: 2004 off-market share buy-back .

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 Rinker shares they received in relation to those post-CGT CSR shares.

The demergers calculator on our website will help you work out the cost bases of your Rinker and CSR shares after the demerger. Also see our fact sheet 2003 CSR demerger: impact on resident individual shareholders .

Fosters Group Ltd

2003 share buy-back

On 22 December 2003, Foster's announced that they had completed an off-market share buy-back.

Shareholders who took part in the buy-back received $4.00 per share, which included a fully franked dividend of $2.19 per share.

The date the shares were sold was 22 December 2003.

If the capital proceeds of $1.81 per share was more than the cost base of the share, the difference was a capital gain in 2003-04. If $1.81 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Foster's Group Ltd: 2003 off-market share buy-back .

Grainco Australia Ltd (GAL)

Takeover

On 1 October 2003, Grainco Australia Ltd (GAL) and Graincorp entered a scheme of arrangement under which Graincorp took control of GAL. GAL shareholders had a choice of receiving either cash or Graincorp reset preference shares (RPS) in exchange for their GAL shares.

In either case, the value received was $1.392 per GAL share they surrendered.

Scrip-for-scrip rollover was available on the exchange of Graincorp RPS for GAL shares but not to the extent cash was received. Note: Scrip-for-scrip rollover does not apply to a capital loss.

If scrip-for-scrip rollover does not apply and the cost base of the GAL share was more than $1.392, the difference was a capital gain in 2003-04. If $1.392 was less than the share's reduced cost base, the difference was a capital loss. The date the shares were disposed of under the takeover was 1 October 2003.

Henderson Group PLC (formerly HHG PLC)

Return of cash and reduction of investor base

In April 2005, HHG PLC undertook a capital reduction which included:

• a return of cash to all shareholders, and
• a reduction in investor base - which affected shareholders unless they chose not to participate.

There are capital gains tax consequences for shareholders. See our fact sheet HHG PLC capital reduction .

Hibernian Friendly Society (NSW) Limited (now Aevum Limited)

Demutualisation

The acquisition cost for Hibernian shares was $1.162 per share and the acquisition date was 2 September 2002. Hibernian changed its name to Aevum Ltd in May 2004.

See our fact sheet Hibernian demutualisation: impact on shareholders .

Insurance Australia Group (IAG) Limited

Share purchase plan

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

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

2004 share buy-back

In May 2004, IAG announced a share buy-back. Shareholders who took part in the buy-back received $4.40 per share, which included a fully franked dividend of $2.62 per share.

The date the shares were sold under the buy-back was 21 June 2004.

For capital gains tax purposes, they are taken to have received $2.16 per share.

If the capital proceeds of $2.16 were more than the cost base of the share, the difference was a capital gain in 2003-04. If $2.16 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Insurance Australia Group Limited 2004 off-market share buy-back .

IOOF Ltd

Demutualisation

The acquisition cost for IOOF shares was $2.53 per share and the acquisition date was 14 June 2002.

See fact sheet IOOF demutualisation: impact on individual shareholders .

Jupiters Limited (merger with TABCorp)

Merger

On 13 November 2003 Jupiters Limited merged with TABCorp. Jupiter's shareholders were offered a choice of cash or a combination of cash and TABCorp shares for their Jupiters shares.

Partial scrip-for-scrip rollover was available where TABCorp shares were acquired. Rollover is not available for the cash amounts received. Note: Scrip-for-scrip rollover does not apply to a capital loss.

If scrip-for-scrip rollover does not apply and the cost base of the Jupiter share was more than $11.28, the difference was a capital gain in 2003-04. If $11.28 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Jupiters Limited merger with TABCorp Holdings Limited .

Mayne Group Ltd

2004 share buy-back

In March 2004, Mayne conducted an off-market share buy-back. Shareholders who took part in the buy-back received $3.55 per share.

The date the shares were sold was 22 March 2004.

If the capital proceeds of $3.55 per share was more than the cost base of the share, the difference was a capital gain to the shareholder in 2003-04. If $3.55 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Mayne Group Ltd: 2004 off-market share buy-back .

Mincor Resources NL

Demerger

In October 2003 Mincor shareholders received one Tethyan Copper Company Ltd (TCC) share for every 3.37 Mincor shares they held.

Mincor has advised that TCC represented 9.582% of the market value of the group as a whole just after the demerger. Shareholders who received TCC shares should use this percentage to apportion the sum of the cost bases of their post-CGT Mincor shares between these shares and the TCC shares they received in relation to those post-CGT Mincor shares.

The demergers calculator on our website will help you work out the cost bases of your Mincor and TCC shares after the demerger.

See our fact sheet 2003 Mincor Resources NL demerger .

News Corporation Ltd

Reincorporation

In September 2004, News Corporation Ltd reincorporated in the US. Shareholders of News Corporation Ltd can choose scrip-for-scrip rollover on the receipt of News Corporation shares (including those represented by Chess Depository Instruments or CDIs) for the cancellation of their News Corporation Ltd shares. Note: Scrip-for-scrip rollover does not apply to a capital loss.

If rollover is chosen, the first element of the cost base of each News Corporation share (including those represented by CDIs) is the sum of the cost base of the two News Corporation Ltd shares they exchanged for it, and shareholders are taken to have acquired their News Corporation shares or CDIs at the time they acquired News Corporation Ltd shares they exchanged for them.

See our fact sheet Newscorp reincorporation .

NRMA Insurance Group Ltd (NIGL)

Demutualisatio n

The acquisition cost of NIGL shares allocated to shareholders was $1.78 per share.

The acquisition date was 19 June 2000.

For additional shares purchased through the facility, the acquisition cost was $2.75 and the acquisition date was 6 August 2000.

OPSM Group Ltd

Takeover

Between 16 June 2003 and 2 September 2003 Luxottica South Pacific Pty Limited made a successful takeover offer for OPSM. Shareholders who accepted the offer received $3.80 cash for each OPSM share they held.

The date the shares were disposed of under the takeover was:

• 17 July 2003 if the shareholder accepted the offer on or before that date, or
• the date the offer was accepted if the shareholder accepted the offer after 17 July 2003.

If the capital proceeds of $3.80 per share were more than the cost base of the share, the difference was a capital gain in 2003-04. If $3.80 was less than the share's reduced cost base, the difference was a capital loss.

Over 50s Mutual Friendly Society Limited (OFM Ltd)

Demutualisation

The acquisition cost of OFM Ltd shares was $1.65 per share and the acquisition date was 12 June 2001.

See fact sheet OFM Investment Group Limited (OFM) demutualisation: impact on individual shareholders .

Pasminco Limited

Declaration that shares are worthless made by administrators

Following the declaration by the administrators on 31 March 2005 that they consider that Pasminco shares are worthless, shareholders of Pasminco can choose to make a capital loss in the 2004-05 year equal to the reduced cost base of their shares at the time of the declaration.

See our fact sheet Capital losses on Pasminco Ltd shares .

Creation of a trust over shares

Shareholders may make a capital loss if they create a valid trust over shares they own in a company under administration - for example, Pasminco shareholders who agree to sell their shares but hold them on trust for the buyer until the sale can be completed. See our fact sheet Capital losses on Pasminco Ltd shares and Taxation Determination TD 2004/13: Capital gains: can CGT event E1 in section 104-55 of the Income Tax Assessment Act 1997 happen to a shareholder in a company in voluntary administration under Part 5.3A of the Corporations Act 2001 who declares a trust over their shares?

Pivot Ltd

Merger

Pivot Ltd changed its name to Incitec-Pivot Ltd in April 2003 and then merged with Incitec Fertilizers Ltd (IFL) on 1 June 2003.

Shareholders of Pivot who acquired their shares before 20 September 1985 made a capital gain under CGT event K6 if their capital proceeds per share was more than $15.08 and they disposed of them after 28 July 2003.

The capital gain is equal to 70% of the difference between the capital proceeds and $15.08. (No capital loss is available under CGT event K6.)

See our fact sheet Pivot merger with Incitec - CGT on sale of pre-CGT shares .

Principal Office Fund (POF)

Takeover

Between 20 June 2003 and 1 September 2003 Investa Property Group (IPG) made a successful takeover offer for Principal Office Fund (POF). Unit holders who accepted the offer had a choice of receiving $19.13, or $5.70 plus seven IPG stapled securities, for every 12 POF units they held.

Unit holders who refused the offer had their POF units compulsorily acquired and received $5.70 plus seven IPG stapled securities for every 12 POF units they held.

Partial scrip-for-scrip rollover was available where IPG stapled securities were received. Rollover is not available for the cash amounts received. Note: Scrip-for-scrip rollover does not apply to a capital loss.

If scrip-for-scrip rollover does not apply, unit holders made a capital gain in 2002-03 or 2003-04 if the cost base of each of their POF units was less than the total value of IPG securities plus the cash they received. Unit holders made a capital loss if the reduced cost base of each of their POF unit was more than the value of IPG securities plus the cash they received for it.

The date the POF units were disposed of under the takeover was:

• if the offer was accepted - the date the acceptance was posted (this may have been in 2002-03 or 2003-04) or
• if the units were acquired compulsorily - 2 October 2003.

Promina Group Ltd

2005 return of capital

On 20 June 2005 Promina Group Ltd made a return of capital to shareholders of $0.23 per share.

Shareholders needed to reduce the cost base and reduced cost base of each share by $0.23. For each share that had a cost base of less than $0.23, the difference is a capital gain in 2004-05.

See our fact sheet Promina Group Ltd 2005 return of capital .

Rio Tinto Ltd

2005 share buy-back

On 3 February 2005, Rio Tinto announced a share buy-back. Shareholders who took part in the buy-back received $36.70 per share, which included a fully franked dividend of $32.70 per share.

For capital gains tax purposes, they are taken to have received $6.44 per share.

The date the shares were sold under the buy-back was 9 May 2005.

If the capital proceeds of $6.44 was more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $6.44 was less than the share's reduced cost base, the difference is a capital loss.

See our fact sheet Rio Tinto Ltd 2005 share buy-back .

Seven Network Ltd

2004 share buy-back

On 14 December 2003, Seven Network Ltd announced a buy-back of ordinary shares.

Shareholders who took part in the buy-back received $5.80 per share, which included a fully franked dividend of $2.32 per share.

The date the shares were sold was 22 December 2003.

If the capital proceeds of $3.48 per share was more than the cost base of the share, the difference was a capital gain in 2003-04. If $3.48 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Seven Network Ltd: 2004 off-market share buy-back .

Telstra

Public share offer 1

The Telstra public shares were acquired on 15 November 1997. For shareholders who use the indexation method in calculating their capital gain, they index their first and final instalments from 15 November 1997.

Public share offer 2

The Telstra public shares were acquired on 22 October 1999 if the instalment receipts were purchased through the offer. Indexation does not apply as the shares were acquired after 11.45am (by legal time in the ACT) on 21 September 1999.

2003 share buy-back

In November 2003, Telstra undertook an off-market share buy-back. Shareholders who took part in the buy-back received $4.20 per share, which included a fully franked dividend of $2.70 per share.

If the capital proceeds of $1.50 were more than the cost base of the share, the difference was a capital gain in 2003-04. If $1.50 was less than the share's reduced cost base, the difference was a capital loss.

2004 share buy-back

On 15 November 2004, Telstra announced the results of an off-market share buy-back.

Shareholders who took part in the buy-back received $4.05 per share, which included a fully franked dividend of $2.55 per share. The shares sold under the buy-back were disposed of on 14 November 2004.

For capital gains tax purposes, they are taken to have received $2.25 per share.

If the capital proceeds of $2.25 were more than the cost base of the share, the difference is a capital gain to the shareholder in 2004-05. If $2.25 was less than the share's reduced cost base, the difference is a capital loss.

See our fact sheet Telstra 2004: Off-market share buy-back .

United Energy Ltd

Takeover

On 23 July 2003 Alinta Ltd and United Energy Ltd entered into a scheme of arrangement under which Alinta acquired all the United Energy shares it did not already own. Shareholders received $3.15 for each United Energy share they held.

The date the shares were disposed of under the takeover was 23 July 2003.

If the capital proceeds of $3.15 was more than the cost base of the share, the difference was a capital gain in 2003-04. If $3.15 was less than the share's reduced cost base, the difference was a capital loss.

Wesfarmers Group Ltd

Return of capital

On 18 December 2003, Wesfarmers Group Limited made a return of capital to shareholders of $2.50 per share.

Shareholders needed to reduce the cost base and reduced cost base of each share by $2.50. For each share that had a cost base of less than $2.50, the difference was a capital gain in 2003-04.

See our fact sheet Wesfarmers Group Ltd (Wesfarmers) return of capital .

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 WMCR shares they received in relation to those post-CGT Alumina shares.

The demergers calculator on our website will help you work out the cost bases of your Alumina and WMCR shares after the demerger.

Takeover

In March 2005 BHP Billiton Ltd made a takeover offer for WMC Resources Ltd. Shareholders received $7.85 for each WMC share they held.

The date the shares were disposed of under the takeover offer was:

• 3 June 2005 - if the shareholder accepted the offer on or before that date, or
• the date the offer was accepted - if the shareholder accepted the offer between 4 June 2005 and 17 June 2005 and the acceptance was received by BHP by 7.30pm on 17 June 2005, or
• for other WMC shareholders - in the 2005-06 income year, when BHP Billiton completed the compulsory acquisition.

If the capital proceeds of $7.85 per share was more than the cost base of the share, the difference was a capital gain. If $7.85 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet WMC resources Ltd takeover by BHP Billiton Ltd .

Westfield

Capital restructure

In July 2004, Westfield Group restructured by issuing holders of Westfield Ltd shares, Westfield Trust units, and Westfield America Trust units with stapled securities.

Participants received Westfield Group stapled securities through either a stapling arrangement or a sale facility. They also had the option of receiving cash under the sale facility.

The tax consequences of these transactions vary depending on whether the shareholder or unitholder chose the 'cash alternative' or 'exchange by sale alternative' or did nothing.

See our fact sheets Westfield Group restructure 2005: Tax consequences for Westfield Limited shareholders; Westfield Group restructure 2005: Tax consequences for Westfield Trust unitholders; Westfield Group restructure 2005: Tax consequences for Westfield America Trust unitholders .

Westpac Banking Corporation

Share buy-back

In June 2004, Westpac conducted a share buy-back. Shareholders who took part in the buy-back received $14.50 per share, which included a fully franked dividend of $10.50 per share.

For capital gains tax purposes, they are taken to have received $7.21 per share. The date the shares were sold under the buy-back was 21 June 2004.

If the capital proceeds of $7.21 were more than the cost base of the share, the difference was a capital gain to the shareholder in 2003-04. If $7.21 was less than the share's reduced cost base, the difference was a capital loss.

See our fact sheet Westpac Banking Corporation Ltd 2004 off-market share buy-back .