A PLG stapled security comprises three separate assets for capital gains tax purposes; a Propertylink Trust (PT) unit, Propertylink Australian Industrial Partnership (PAIP) unit and a Propertylink (Holdings) Limited (PHL) share.
For capital gains tax purposes, you need to apportion the cost of each stapled security and the proceeds of sale of each stapled security over the separate assets that make up the stapled security. This apportionment should be done on a reasonable basis.
One possible method of apportionment is on the basis of the relative net assets of the individual entities. For more information, see the ATO website – https://www.ato.gov.au/general/capital-gains-tax/shares,-units-and-similar-investments/stapled-securities/
The relative net assets of the individual PLG entities are as follows:
|15 August 2016||0%||85%||15%||100%|
|31 December 2016||0%||84%||16%||100%|
|30 June 2017||0%||80%||20%||100%|
|31 December 2017||0%||75%||25%||100%|
|30 June 2018||0%||72%||28%||100%|
|29 August 2018*||4%||16%||80%||100%|
* On 29 August 2018 PT resolved to reallocate capital to PAIP and PHL so as to more closely align PLG Group capital with the capital employed by each of the entities in the Group. For further information on the taxation implications of the capital reallocation, please click here.
If you acquired a PLG stapled security through the holding of a stapled security in PHL and PT (pre-existing PHL stapled securities) prior to the IPO on 15 August 2016, your cost base in each separate asset that makes up that PLG stapled security will be affected by the restructure that occurred as part of the IPO. As a result, your cost base in each asset making up a PLG stapled security should be as follows:
|If cost base of pre-existing PHL stapled security was equal to or less than 80c||0||0||80c|
|If cost base of pre-existing PHL stapled security exceeded 80c||Excess cost base above 80c||0||80c|