TABLE OF CONTENTS

• ATO 2017/004
• ANZ booklet

cost base - 18/08/2022

sold 1/9/22

For this determination ASX will use the ANZ VWAP on 21 July 2022 and the entitlement offer price ($18.90).

Last modified: 30 Jun 2023QC 21832

Hi @ub268

Our tech team has come through with advice about how you'd treat mum's shares.

The renounceable ANZ Entitlement Offer was for existing shareholders to subscribe for 1 ANZ share at $18.90 for every 15 ANZ shares held at Record Date.  Your mum received a cash payment of $4 for every 15 ANZ shares she held. The cash payment, also known as a retail premium, is capital gain. For more information on why the retail premium is capital gain and retail premium go to TR2017/4 and Taxing retail premium respectively.

You advised mum’s ANZ shares comprised of pre and post 1985 purchases. You need to separate mum’s ANZ shares into pre and post 1985 shares as under s 130-45, the entitlements were acquired at the time when the original shares were acquired. Accordingly, the entitlements payment that attached to the pre 1985 shares do not attract capital gain tax. The entitlements payment that attached to the post 1985 may be eligible for a capital gain discount if mum satisfies the criteria set out in CGT discount.

https://community.ato.gov.au/s/question/a0J9s000000OTh7/p00201270

Please refer to ATO 2017/004.

Taxing retail premiums | Australian Taxation Office

Australian resident shareholders
A shareholder will make a capital gain if the retail premium amount exceeds the cost base of the entitlement, generally incidental costs.

A shareholder is taken to have acquired the rights when it acquired the original shares. Therefore, any capital gain may represent a discount capital gain if the eligible shareholder’s original shares have been held for 12 months or more.

Retail premiums paid to shareholders are not dividends.

Here’s the link to download the document.
Taxation Ruling TR 2017/4

Buy date:
“Accordingly, an Eligible shareholder is taken to have acquired the rights when it acquired the original shares.”

Please refer to ATO TR2017/4 page 3 of 10.

https://community.sharesight.com/t/anzr-entitlement-offer-how-to-show-in-sharesight/1081/3

ATO 2017/004

6. Each Entitlement, being a right to be issued shares, is a CGT asset. CGT event A1 happens when an Entitlement is transferred to a successful bidder under the retail bookbuild process. The Retail Premium represents capital proceeds from a CGT event. An Eligible shareholder will make a capital gain if the capital proceeds exceed the cost base of the Entitlement. 

7. An Eligible shareholder’s Entitlements are ‘rights’ acquired from the Company for the purposes of section 130-45 of the ITAA 1997. Accordingly, an Eligible shareholder is taken to have acquired the rights when it acquired the original shares. Therefore, any capital gain may represent a discount capital gain so far as the Eligible shareholder’s original shares have been held for 12 months or more.

ANZ booklet