TAXATION TREATMENT

Taxation treatment - Longevity Group Australia

The “cost base” here refers to the amount calculated as the cost of your Longevity Group Australia Ltd  Shares, for income tax purposes.
So, when you decide to sell part or all of your Longevity Group Australia Ltd  Shares at some future date, you can determine your reportable “capital gain” (or “capital loss”) – by deducting the “cost base” amount from the proceeds you receive from selling your Longevity Group Australia Ltd   Shares.

For most (if not all) Longevity Group Australia Ltd   shareholders, the “cost base” amount is calculated by multiplying the number of Longevity Group Australia Ltd  Shares you sell by a factor of $2.92 per Share.

Your accountant or tax agent can advise if you have any additional amounts, in calculating the “cost base” of your Longevity Group Australia Ltd  Shares. As your Longevity Group Australia Ltd  Shares were issued without actual cost you, most (if not all)Longevity Group Australia Ltd  shareholders would have no additional amounts to include in their “cost base”.

This is a special tax concession that is provided under income tax law, and only applies to the Longevity Group Australia Ltd Shares you received as a result of the demutualisation of Transport Friendly Society on 30 June 2014.

If you have acquired other Longevity Group Australia Ltd  (formally TFSL)  shares in any other situation (that is, other than from the demutualisation of TFSL), the normal cost rules apply – which means your “cost base” is then limited to your actual cost incurred in acquiring the shares.

Yes, the Australian Taxation Office is aware of the demutualisation of  Transport Friendly Society Ltd, and the special tax concession for Longevity Group Australia Ltd  Shares – and also the “$2.92 per share” factor, for purposes of calculating the “cost base” of your Longevity Group Australia Ltd   Shares.

No. You only have to do the calculations when preparing your tax return, for the year in which you sell part or all of your Longevity Group Australia Ltd  Shares.

In other words, if you do not plan to sell your Longevity Group Australia Ltd  Shares for some time, all you have to do is just remember the special tax concession “cost base” of $2.92 per Share for that future year.

As a general rule: You only have to give your tax agent information that will help in preparing your tax return, for the year that the return relates to.

Such information includes any income derived in a particular year from your TFSL Shares. Typically, this could be:

1. Any dividend income you have received in the year, from your Longevity Group Australia Ltd (formally TFSL) Shares.

  • Dividend statements (issued by TFSL) should then be provided.

2. Any capital gain or capital loss, arising from a sale of part or all of your Longevity Group Australia Ltd  Shares in the year.

  • Inform your agent of the number of TFSL Shares you sold in the year, and how much you received for selling those shares.
  • Show your agent the one-page Tax Cost Base Information Sheet we have provided you. (Retain the original with you, your agent can take a copy.)
  • Show your agent the Proposal to Consider Demutualisation booklet we sent you shortly before the TFSL Members meeting on 2 April 2014, when it was resolved to demutualise TFSL. Especially, section 3 of the booklet which includes the tax section. (Retain the original booklet with you, your agent can take a copy of any relevant pages.)
  • Mention (to your tax agent) the special tax ruling that was issued by the Australian Taxation Office on 2 April 2014, especially for the benefit of TFSL shareholders – which is described as Class Ruling CR 2014/35. A copy of this tax ruling may be obtained from the following Longevity Group Australia Ltd  website: http://www.longevityga.com.au/shareannouncements.html

Your tax agent may also seek bank records and other information to help prepare and complete your tax return, as may be relevant to your own personal circumstances.

The actual issue of Longevity Group Australia Ltd  (formally TFSL) Shares (effective 30 June 2014) had no personal tax reporting impact for you.

So, there is nothing you need to report about receiving your Longevity Group Australia Ltd  ( formally TFSL ) Shares in your 2014 tax return.

Of course – and as mentioned in the answer to the previous question, you may need to report dividend income or realised capital gain (or loss) you derive from your Longevity Group Australia Ltd   Shares – but that only needs to be considered for a tax return that relates to a year in which you actually derive dividend income or realise a capital gain (or loss) on your Longevity Group Australia Ltd   Shares.

In other words, if there is no dividend income and no realised capital gain/loss for a year, there is nothing to report (for these items) in your tax return for that year.

If you are not sure about what to do here, we encourage you discuss it with a tax agent – providing him the type of information listed in the answer to the previous question.

The above is general tax information only, based on advice that Longevity Group Australia Ltd  has received itself. It is provided to help you share this information with your accountant and tax agent – who is the appropriate person to give you tax advice, and to help prepare your personal tax return (unless you decide to prepare your own tax return).