My understanding is, it’s a capital gains tax event. The...

My understanding is, it’s a capital gains tax event. The proceeds are compared to the cost base. The amount (if any) in excess of the cost base is a capital gain. CGT discount applies if eligible. If the return of capital is not more than the cost base, then the cost base is reduced by the amount of the capital return.

Leo will apply for a class ruling if they decide to return capital so it will be all be spelled out.