I have done some research for my own purposes (but disclaimer: I am not a tax agent and this is not tax/financial advice).
As far as I can tell, if you bought your shares for x cents per share then (assuming a 19c capital return):
(a) If x is greater than or equal to 19, your cost base reduces by 19c, but the capital return itself is not taxable and there are no franking credits (it is not a dividend); alternatively
(b) If x is less than 19, then your cost base reduces to zero, and you would realise a capital gain of (19 - x) cents per share (which is logical because you would have locked in that gain, even if the shares would subsequently fall to zero - note that I am not saying that this is likely but rather I am using that as a scenario to illustrate the point)
The following is an example which I found (albeit from a while back, and I cannot guarantee that the treatment has not changed):
https://www.ato.gov.au/Individuals/Ind/Events-affecting-shareholders/Promina-Group-Limited-(Promina)-return-of-capital/?page=3
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Ann: Proposed Capital Return to Shareholders of $14.0 Million, page-51
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Last
6.8¢ |
Change
0.000(0.00%) |
Mkt cap ! $5.110M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 3 | 7.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.9¢ | 22388 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 3 | 0.070 |
1 | 7500 | 0.067 |
1 | 7590 | 0.066 |
1 | 19607 | 0.051 |
1 | 25000 | 0.040 |
Price($) | Vol. | No. |
---|---|---|
0.079 | 22388 | 1 |
0.080 | 10000 | 1 |
0.150 | 713 | 1 |
0.000 | 0 | 0 |
0.000 | 0 | 0 |
Last trade - 16.17pm 02/04/2025 (20 minute delay) ? |
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