Tax Information
As a Securityholder in Babcock & Brown Residential Land Partners (ASX: BLP), you own shares in an Australian public company, Babcock & Brown Residential Land Partners Limited (BBRLPL or ‘the Company’) and units in an Australian registered managed investment scheme, Babcock & Brown Residential Land Partners Trust (BBRLPT or ‘the Trust’). The share in BBRLPL and the unit in BBRLPT form a "stapled security", the components of which cannot be separately dealt with or traded. Each share in BBRLPL and each unit in BBRLPT remain separate assets for Australian capital gains tax purposes.
Relative Cost Bases of Stapled Securities
To calculate the cost base for each separate capital gains tax asset that comprises a Babcock & Brown Residential Land Partners stapled security, split the acquisition cost of each stapled security between the two capital gains tax assets. This split needs to be done on a reasonable basis. While it is for Securityholders to decide how to split the acquisition cost of the stapled securities, Securityholders might decide to use the relative net assets of BBRLPL and BBRLPT at the date closest to the date of acquisition of the Securityholder’s stapled securities to do this.
The relative net assets of BBRLPL (Company) and BBRLPT (Trust) at relevant dates are set out below.
Proportion of Net Assets
Company Trust
30 June 2006 1.00% 99.00%
31 December 2006 1.02% 98.98%
30 June 2007 1.03% 98.97%
Distribution Statement, Annual Tax Statement and Tax Guide
BLP Securityholders receive a Distribution Statement each time BLP pays a distribution.
Where BLP’s distributions for a financial year include any taxable components, BLP Securityholders will also receive an Annual Tax Statement at the same time they receive the Distribution Statement relating to the Final Distribution for that financial year. The purpose of the Annual Tax Statement is to provide Securityholders with the information that Securityholders require in order to prepare their Australian income tax return for the relevant financial year.
In addition, BLP provides all Securityholders with a Taxation Statement Guide once a year. The purpose of this Guide is to provide you, as a security holder in BLP, with general information regarding the tax implications arising from the receipt of the relevant year's distributions from BLP and the tax implications associated with any disposal of BLP stapled securities.
2006/07 Information
The 2006/07 interim and final distributions paid by BLP include the following components:
Distribution 2007 Interim 2007 Final Total
Payment Date 23 February 2007 31 August 2007 -
Tax Deferred Amount $/unit 0.0170 0.0170 0.034
Taxable Income Amount (interest) $/unit 0.0205 0.0205 0.0410
Taxable Income Amount (interest) $/unit 0.000 0.000 0.000
Totals $/unit 0.0375 0.0375 0.0750
The information on your 2006/07 interim and final distribution statements will also be relevant if you dispose of any of your securities in BLP.
The 2006/07 Taxation Statement Guide is intended to assist Securityholders in meeting their Australian income tax compliance obligations and has been prepared on the basis of taxation laws prevailing as at August 2007. Securityholders are not entitled to rely on this information in relation to managing their specific tax affairs and should obtain their own tax advice in relation to the taxation implications associated with their investment in BLP.
Click here for a copy of the 2006/07 Taxation Statement Guide
2007/08 Information
The interim distribution for the period ended 31 December 2007 from BLP includes the following components*:
Australian Interest - 50%
Tax Deferred - 50%
* Estimate only. The taxable components of the distribution will be advised in the Annual Tax Statement for the year ending 30 June 2008.
Babcock & Brown Residential Land Partners Services Limited, the Responsible Entity of Babcock & Brown Residential Land Partners Trust, considers that Babcock & Brown Residential Land Partners Trust is a managed investment trust for the purposes of section 12-395 of Schedule 1 to the Taxation Administration Act 1953, in relation to its income year ending 30 June 2008, and gives the following notice to you as recipient of the payment outlined above.
Further Queries
Should you have any queries relating to your specific Securityholding or Distribution Statement you can contact our Security Registry, Link Market Services on:
Link Market Services:
Telephone: 1800 645 238 (within Australia) / +61 2 8280 7586 (outside Australia)
Email: registrars@linkmarketservices.com.au
Website: Link Market Services
The taxation consequences of any investment in Babcock & Brown Residential Land Partners stapled securities will depend on your particular circumstances. Potential investors and BLP securityholders should obtain their own tax advice in relation to the taxation implications associated with their investment in BLP. Advice relating to personal tax issues should be obtained from your accountant or other professional adviser.