I agree that your method minimises the 'upfront' capital gain from the $0.25 cash payment.
However, if you were to sell your new RMS shares you would pay a higher capital gain (than my method). Correct?
CASH COMPONENT KKLL (Buy 10c): Scrip 8.6c (10c x 153/178) Cash 1.4c Capital gain = 25c-1.4c = 23.6c
Rennis (Buy 10c): Scrip 0c Cash 10c Capital gain = 25c-10c = 15c
Difference = 8.6c
SCRIP COMPONENT COST BASE KKLL 8.6c Rennis 0c Rennis has a 8.6c lower Cost Base which increases the capital gain by 8.6c if sold.
If one intends to keep the new RMS shares indefinitely (assuming CGT rollover relief), then Rennis's method minimises the 'upfront' capital gain from the $0.25 payment.
If one intends to sell the new RMS shares during FY26 (assuming CGT rollover relief), then both methods will result in the same 'net' capital gain.
If one intends to sell the new RMS shares after FY26 (assuming CGT rollover relief), then Rennis's method is preferable as it minimises the 'upfront' capital gain and defers later (higher) capital gains.
Conclusion: Many on this thread will have a significant number of SPR shares.
Does the ATO specify a definitive method to adjust the Cost Base from a Scrip+Cash SoA?
SPR Price at posting:
$2.12 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)