Tax Information
Each Stapled Security in BBP comprises one unit in Babcock & Brown Power Trust (BBPT) and one ordinary share in Babcock & Brown Power Limited (BBPL) which are stapled together and unable to be separately traded, transferred or sold.
The subscription price comprises the total application price which is payable for one unit in BBPT and one ordinary share in BBPL. As a result, any market price of each Stapled Security will be the combined price of one unit in BBPT and an ordinary share in BBPL.
Each unit in BBPT and each share in BBPL remain separate assets for Australian capital gains tax purposes.
Click here for more information about calculating your cost base for Australian capital gains tax purposes.
Cash flows generated by BBPT on the loan arrangements with BBPL can be utilised to make distributions to the Stapled Security Holders which may include returns of capital. Until BBPT has distributed the majority of its contributed capital, distributions may be treated as a return of capital (and not as assessable income) under the current taxation legislation and guidelines. Capital distributions will be clearly noted on the Distribution Statement.
Should the total non-assessable distributions received by an investor exceed the investor’s tax cost base for their BBPT units, the excess will be a capital gain and will be taxed at the investor’s marginal tax rate. The gain may be eligible for the CGT discount if derived by an individual or trustee or by a superannuation fund.
Further Queries
Should you have any queries relating to your specific security holding or Distribution Statement you can contact Link Market Services Limited on:
Link Market Services Limited:
Telephone: 1800 260 668 (witihin Australia) / +61 2 8280 7619
Email: babcockbrown@linkmarketservices.com.au
Website: Link Market Services
Advice relating to personal tax issues should be obtained from your stockbroker, solicitor, accountant or other professional advisor.