What this addendum covers
The ATO has issued an addendum to Class Ruling CR 2026/36, which covers the tax treatment of Red Metal Limited's in specie return of Maronan Metals Limited shares to shareholders.
What has changed
The addendum corrects the cost base apportionment percentages stated in paragraph 15 of the original ruling. The figures have changed as follows:
- First percentage: from 36.16% to 66.09%
- Second percentage: from 63.84% to 33.91%
Period the ruling applies to
The corrected ruling applies from 1 July 2025 to 30 June 2026.
Scope of the ruling
The ruling applies to Red Metal Limited shareholders who received Maronan Metals Limited shares as an in specie distribution during that period. The ruling does not affect any other parties.
Using the corrected figures
The corrected cost base split of 66.09% and 33.91% replaces the original figures of 36.16% and 63.84% for the purpose of calculating capital gains tax positions.
The full consolidated ruling is available at: https://www.ato.gov.au/law/view/document?docid=CLR/CR202636A1/NAT/ATO/00001
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.