"You also stand to gain if you are relatively recent shareholder...

"You also stand to gain if you are relatively recent shareholder with a high cost base *and* you already have a realised Capital gain or you plan to exit a profitable position for whatever reason eg dissatisfied with FGL or some such. The effective CGT rate for super funds is 10% so you will gain $1 for each $10 of realised capital loss in the BHP buy-back (deemed capital component of the buy-back price is $2.50)"

Correction CK

The deemed capital component will have an excess of the Tax Value component added on for the purposes of realising a capital loss in the buyback. Page 17 of the buyback booklet explains it clearly.

For example in last year's buyback, the initial capital component returned to shareholders was $2.10, however the excess of the Tax Value over the buyback price was $3.86, therefore the deemed share proceeds were $5.96 per share. The difference between $5.96 and the individual's cost base of BHP shares then became the capital loss (or gain) in the transaction.