Investor Information

Calculating your Cost Base for Australian Capital Gains Tax Purposes

As a Securityholder in Babcock & Brown Power, you own shares in an Australian company, Babcock & Brown Power Limited (BBPL) and units in a trust which is an Australian registered scheme, Babcock & Brown Power Trust (BBPT). The share in BBPL and the unit in BBPT form a ‘Stapled Security’ and cannot be separately dealt with or traded. Each share in BBPL and each unit in BBPT remain separate assets for Australian capital gains tax purposes.

To calculate your cost base for each separate capital gains tax asset, you will need to split the acquisition cost of each Stapled Security between the two assets. This split needs to be done on a reasonable basis. While it is for you to decide how to split the acquisition cost of your Stapled Securities, you might decide to use the relative net assets of BBPL and BBPT at the date of acquisition of your Stapled Securities to do this. The relative net assets of BBPL and BBPT at various dates are set out below:

The taxation consequences of any investment in Babcock & Brown Power Stapled Securities will depend on your particular circumstances. Potential investors and Babcock & Brown Power Securityholders should obtain their own tax advice in relation to the taxation implications associated with their investment in Babcock & Brown Power.

Proportion of Net Assets of BBPL and BBPT