New Energy Solar Stapled Security Tax Cost Base Allocation

Tax Information Relating to your New Energy Solar (NEW) Stapled Security

 

A NEW stapled security comprises a share in New Energy Solar Limited (Company) and a unit in New Energy Solar Fund (Trust). This share and unit must be traded as one NEW stapled security on the Australian Securities Exchange (NEW stapled security). However, Company shares and Trust units each comprise separate assets for Australian capital gains tax purposes.

Your cost base for each Company share and Trust unit will be equal to what you paid for each security together with any incidental costs of acquisition or disposal such as brokerage fees and stamp duty. The information provided below is designed to assist you apportion your cost base across each share and unit.

Cost base of securities acquired on market

The Australian Taxation Office state on their website that the allocation of any purchase price (or sale price) of the securities acquired (or sold) on market must be done on a reasonable basis.  “One reasonable basis of apportionment is to base it on the portion of the value of the stapled security that each security represented.”

The net assets of Company and Trust at half year end are outlined below. This net asset information will be updated shortly after announcement of the NEW Annual and Half Year Financial Results.

DateNet assets weighting NESL(Company)Net assets weighting (Trust)Information source
30 June 201851.11%48.89%2018 Interim Financial Report
31 December 201744.57%55.43%2017 Annual Financial Report
30 June 201736.76%63.24%2017 Interim Financial Report
31 December 20165.79%94.21%2016 Annual Financial Report
30 June 2016 5.14%94.86%2016 Interim Financial Report

Cost Base of securities issued under the Security Purchase Plan (SPP) equity raising allotted on 17 August 2018.

The issue price under the SPP was $1.416 per NEW stapled security with $0.708 for each Company share and $0.708 for each Trust unit.

Cost Base of securities issued under the Distribution Reinvestment Plan (DRP) allotted 15 August 2018

The issue price under the DRP was $1.41 per NEW stapled security with $0.719 for each share in the Company and $0.691 for each unit in the Trust.

Capital reallocation on 27 June 2018

NEW reallocated capital from the Trust to the Company on 27 June 2018. This was achieved by a capital return by the Trust of $0.0914 per issued unit in the Trust, which was compulsorily applied as a capital contribution for existing shares in the Company.

The impact to NEW securityholders as at 27 June 2018 was to increase the cost base for each Company share held by $0.0914 and decrease the cost base for each Trust unit held by $0.0914.

More detail can be found at https://www.newenergysolar.com.au/investor-centre/disclosure 

Cost Base of securities issued under the Distribution Reinvestment Plan (DRP) allotted 15 February 2018

The issue price under the DRP was $1.46 per NEW stapled security with $0.647 for each Company share and $0.813 for each Trust unit.

Cost Base of securities issued under the Initial Public Offer equity raising allotted on 8 December 2017.

The issue price under the Initial Public Offer was $1.50 per NEW stapled security with $0.735 for each Company share and $0.765 for each Trust unit.

Cost Base of securities issued under the Distribution Reinvestment Plan (DRP) allotted 15 August 2017

The issue price under the DRP was $1.58 per NEW stapled security with $0.5767 for each Company share and $1.0033 for each Trust unit.

Capital reallocation on 26 June 2017

NEW reallocated capital from the Trust to the Company on 26 June 2017. This was achieved by a capital return by the Trust of $0.51 per issued unit in the Trust, which was compulsorily applied as a capital contribution for existing shares in the Company.

The impact to NEW stapled securityholders as at 26 June 2017 was to increase the cost base for each Company share held by $0.51 and decrease the cost base for each Trust unit held by $0.51.

More detail can be found at https://www.newenergysolar.com.au/investor-centre/disclosure

Cost Base of securities issued under the NES 2nd capital raising allotted on 9 December 2016

The issue price under the 2nd equity raising was $1.62 per NEW stapled security with $0.081 for each new Company share and $1.539 for each Trust unit.

If you held these NEW stapled securities after the capital reallocation on 26 June 2017 the cost base would be $0.591 for each Company share and $1.029 for each Trust unit (plus any incidental acquisition costs).

Cost Base of securities issued under the NEW initial capital raising allotted on 21 January 2016

The issue price under the initial equity raising was $1.60 per NEW stapled security with $0.08 for each Company share and $1.52 for each Trust unit.

If you held these NEW stapled securities after the capital reallocation on 26 June 2017 the cost base would be $0.59 for each Company share and $1.01 for each Trust unit (plus any incidental acquisition costs).

Further Information

Further information on the tax treatment of stapled securities can be found on the Australian Taxation Office website.

You should not rely on this information as taxation or financial advice as it may not be relevant to your particular circumstances. You should seek specialist tax advice from your personal tax accountant or other tax adviser to determine the taxation consequences applicable to your circumstances