Telstra Shares Cost Base for Capital Gains

Telstra 1 Shares

Are you selling your Telstra 1 Shares that you bought in 1997?

The original instalment was $1.95 on the 3/11/1997.

The second instalment of $1.35 was on the 13/11/1998.

The total purchase price being $3.30 bought on the 3/11/1997.

Telstra 2 Shares

Are you selling your Telstra 2 Shares that you bought in the 2nd offer in October 1999?

The original installment for public applicants was $4.50 on the 15/10/1999.

The second and final installment of $2.90 was on the 2/11/2000.

The total purchase price being $7.40 for the two installments being bought on the 15/10/1999.

Telstra 3 Shares

The Telstra T3 consisted of an initial payment of $2.00 per share, with shares allotted on 24th Nov 2006, followed by a final instalment payment of $1.60 per share by 29th May 2008. On 10th June 2008, shareholders are issued with ordinary Telstra Shares (TLS).

In addition, eligible shareholders who have held their instalment receipts since issue, are issued a bonus share for every 25 they hold.

Because of the bonus shares, the purchase price of each share is reduced to $3.46 per share, the calculation on 1,000 shares plus the 40 bonus shares would be, $3,600 / 1040 shares = $3.46 per share.

Prepayments of the final installment were available on the Telstra 3 shares, if prepayments were made then the final installment was discounted to $1.30 per share, the bonus share was still issued. So based on the 1,000 shares in the first example, the cost base will be $3.17 per share, $3,300 /1040 shares = $3.17 per share.

11 Comments

  1. Hi there, I was using the above for calculation of my T3 shares I bought back in 2008 and cleaning up this weekend I found the original Instalment Receipt holder letter. It actually states in the letter that you may prepay the final instalment and will pay the amount less any prepayment discount, however if you choose to prepay you will not be eligible to receive Bonus Loyalty Shares on those instament receipts. This seems to conflict with what you state above and I’m wondering if I am missing another piece of paper – can you please confirm 100% the prepayment discount and bonus worked together? Thanks heaps.

    1. Author

      I wasn’t aware that you could pay for the shares and receive a discount on the purchase price and not get the bonus shares. If that was the case in your situation you will need to calculate the cost base in regards to your circumstance and not what is on this web page.

      I would assume if you took the discount instead of the Bonus Shares the cost base may be the same.

  2. Could you please advise price of Telstra shares as at 24/7/01 and 08/05/02. My father bought these shares and upon his death were left to my brother, myself and his partner. Have contacted Link Marketing who advised the above dates but did not provide price per share. My father died on 22/12/2007 and shares were transferred into our names on 22/11/08. Your help would be appreciated.
    Judy

  3. Hi how can I check how much my shares are worth

    Regards

  4. Where would I be able to get a copy of my
    final payment for first installment form for T2 shares that I have sold, I have the final payment notice for the final instalment. I have contacted Link market services they can’t help as they have no information copy of paper work on the first instalment payment of $4.50

  5. I am trying to locate my shares. Can you help.
    With thanks
    V McCutcheon

    1. Sorry unable to help, most companies have a contact in regard to their share registry. If you know what shares you own you will then be able to contact the appropriate company and change you details.

  6. I received a letter and application form from National Capital Corporation Pty Ltd (NCC)in Loganholme, QLD offering to buy my existing TESLTRA 2 shares (600 for $1902).

    Can you please advise whether this is a Bona Fide company you are familiar with and whether it is safe to proceed with this transaction? Their offer closes 10 Jan 2011.
    Yours sincerely
    Silvio Rivier

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