Let's Get this Drinks Party Started!, page-92

Mintee, this is what Paul Rickard of Switzer said on the excellent nabtrade platform re EDV's cost base:

(note that if you've already had your WOW shares for > a year, the same will apply to the EDV allocation so you will already qualify for the 50 per cent capital gains tax discount - see the last sentence below. That's something I didn't know.

What are the taxation implications?

Assuming that tax demerger relief is obtained, there shouldn’t be any tax implications for Australian resident shareholders from the demerger per se. If you subsequently sell your Endeavour shares, then you may have to pay capital gains tax.

One thing that will change is your cost base for your Woolworths shares. Following the demerger, the Company will provide an ATO approved “split” to be used where you apportion your current Woolworths cost base between your Endeavour shares and your Woolworths shares.

Let’s take an example. Suppose you purchased your original Woolworths shares for $30.00 each. The Company, following confirmation from the ATO, advises that the approved apportionment is 75% for Woolworths and 25% for Endeavour. This means that your cost base for Woolworths now becomes $22.50 (75% of $30.00), and your cost base for your Endeavour shares is $7.50 each (25% of $30.00).

You will deemed to have purchased your Endeavour shares on the same date that you acquired your original Woolworths shares.