no cgt rollover relief in current offer

Just been looking at the capital gains tax implications of the current offer and the example on p58 of the bidder statement.

Their (abbreviated) example using 10,000 BRM bought at A$1.80:

Cost base = A$18,000

Capital proceeds = Cash (A$1.50 per BRM) + Scrip (market value of new WNIs)
= A$15,000 + A$14,400
= A$29,400

Cost base of original BRM Shares exchanged for the Cash Consideration
= A$18,000 × (A$15,000/A$29,400)
= A$9,184

Therefore, the BRM Shareholder would have a taxable gain on the cash component of A$5,816.

Total cost base of new WNI's acquired = Cost base of original BRM shares – Cost base of original BRM Shares
exchanged for the Cash Consideration

A$8,816 = A$18,000 – A$9,184


So, using this example you would have a capital gain of A$5,816 to declare, this financial year (or 50% of this if you held for over 12 months and had no carried forward capital losses).

If you then sold the WNI immediately for A$14,400 (haha) you would have to declare an additional capital gain of A$5584 (A$14,400 - A$8,816),

You are not eligible for the capital gains tax discount on the sale of the WNI shares, no matter how long you held the BRM shares. This means you'd have to pay the full capital gains tax, or hold the WNI for at least 12 months.

Who knows what skullduggery wah nam could get up to in 12 months? Rail is supposed to be sorted by June, so I assume they'll want to get this all wrapped up by May. Hmmm...

* I have ignored brokerage costs.