What this ruling covers
The Australian Taxation Office has published Class Ruling CR 2026/42, which sets out the tax treatment for Peel Mining Limited shareholders who exchanged their Peel shares for shares in Aeris Resources Limited on 1 July 2026 (the Implementation Date).
This ruling applies from 1 July 2026 to 30 June 2027.
CGT event and capital proceeds
The ruling confirms that CGT event A1 happened on 1 July 2026. Capital proceeds are calculated based on the market value of approximately 0.3363 Aeris Resources shares received per Peel Mining share.
Scrip for scrip roll-over
Eligible shareholders who made a capital gain can choose scrip for scrip roll-over under sections 124-780 and 124-785 of the Income Tax Assessment Act 1997. This allows the capital gain to be deferred - the gain is disregarded at the time of the exchange, and the cost base of the Aeris Resources shares is set to reflect the deferred gain.
Eligibility criteria
The ruling applies to shareholders who:
- held Peel Mining Limited shares on capital account, and
- were registered at 7:00 pm on 24 June 2026 (the Record Date).
The ruling does not apply to exempt entities, temporary residents, employee share scheme holders, or certain non-residents.
Cost base and the related ruling CR 2026/41
The cost base of Peel Mining shares must take into account any reduction from Peel Mining's return of capital on 30 June 2026. That return of capital is covered in the related ruling CR 2026/41 (Peel Mining Limited - return of capital by in specie distribution of shares in Spectre Metals Limited).
Foreign residents
Whether a foreign resident can choose scrip for scrip roll-over depends on whether their Aeris Resources shares qualify as taxable Australian property under section 855-15 of the Income Tax Assessment Act 1997.
Key actions
- Shareholders who held Peel Mining Limited shares on capital account and were registered at 7:00 pm on 24 June 2026 can check the eligibility criteria for scrip for scrip roll-over in CR 2026/42 on the ATO website.
- Eligible shareholders who made a capital gain can choose whether to apply scrip for scrip roll-over. Choosing roll-over defers the capital gain but resets the cost base of the Aeris Resources shares to reflect the deferred amount.
- Shareholders are required to check Class Ruling CR 2026/41 to account for any reduction in the cost base of their Peel Mining shares resulting from the 30 June 2026 return of capital before calculating any capital gain or loss.
- Foreign residents can confirm with a tax adviser whether their Aeris Resources shares qualify as taxable Australian property under section 855-15, as this affects eligibility for scrip for scrip roll-over.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.