Apportioning Consideration of GMG Stapled Securities
A stapled security is a combination of a unit in Goodman Industrial Trust (GIT) (formerly Macquarie Goodman Industrial Trust) and a share in Goodman International Limited (GIL) (formerly Macquarie Goodman Management Limited) that must be traded on the Australian Stock Exchange as one security.
GIT units and GIL shares remain as separate assets for Australian capital gains tax purposes. The cost base of your units and shares is the amount you paid for them, including the incidental costs of acquisition and disposal (eg. brokerage fees and stamp duty). To calculate your cost base you will need to split the acquisition cost of the securities between the two assets. Our suggested method of splitting the acquisition cost is to take the net assets of GIT and GIL and divide each by the net assets of GMG and then multiply by the acquisition security price (see example below).
Example:
| GIT Net Assets |
x Acquisition Security Price |
= Cost Base of GIT |
| GMG Net Assets |
| GIL Net Assets |
x Acquistion Security Price |
= Cost Base of GIL |
| GMG Net Assets |
Example using figures from the Statements of Financial Position contained in
the 2006 MGQ Annual Report
GIT
| $3,902.0 ($M) |
x $4.00(1) |
= $3.95(2) |
| $3,950.0 ($M) |
GIL
| $48.1 ($M) |
x $4.00(1) |
= $0.05(2) |
| $3,950.0 ($M) |
(1) Example Acquisition Security Price
(2) Rounded to two decimal places
Further information regarding the tax treatment of stapled securities can be found on the ATO website
Net Assets Table
| Period |
GIT |
GIL(1) |
Source of Information |
| to |
% of group |
% of group |
|
| 31 December 2004 |
95% |
5% |
2004 Half Year Financial Report |
| 20 June 2005 |
97% |
3% |
2005 Annual Financial Report |
| 31 December 2005 |
95% |
5% |
2005 Half Year Financial Report |
| 30 June 2006 |
99% |
1% |
2006 Annual Financial Report |
| 31 December 2006 |
98% |
2% |
2006 Half Year Financial Report |
| 30 June 2007 |
99% |
1% |
2007 Annual Financial Report |
(1) GIL is the parent entity under the stapled structure. Its contribution to net assets on a standalone basis is derived after deducting GIT’s net asset contribution to the stapled group.
Class Ruling
In relation to the successful merger between Goodman International Limited (formerly Macquarie Goodman Management Limited) and Goodman Industrial Trust (formerly Macquarie Goodman Industrial Trust), we confirm that a Class Ruling was issued by the Australian Taxation Office in January 2006. The Class Ruling confirms that there are no tax consequences associated with the merger: