Note
Please note that BGL does not provide accounting or taxation advice. The following article is designed per ATO Ruling as a guide for Simple Fund 360 and Simple Invest 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other more suitable methods may be used instead of these steps.
ATO Ruling: CR 2025/21
Overview
This article provides guidance on how to process the Premier Investments Limited In-Specie Distribution of Myer Holdings Limited, which occurred on 6 February 2025.
Details
On 6 February 2025, eligible shareholders will receive an In-Specie Distribution of 7.2021 Myer Holdings Limited (Myer) Shares for every 1 Premier Investments Limited (Premier) Share held as at the Distribution Record Date.
For Australian taxation purposes, the Distribution comprises the following components per Premier Share:
• Capital Reduction amount of $0.81; and
• Dividend amount of $5.65. The Dividend is 100% franked at the corporate tax rate of 30%.
Instructions
BGL SMSF holds 5,000 units of Premier Investments Limited shares (PMV) as of the record date and receives the following distributions.
| Information | Per share | Total |
| Myer shares received | 7.2021 | 36,010 |
| Myer shares cost base | $0.89 | $32,048.90 |
| Premier dividend | $5.65 | $28,250.00 |
| Capital Reduction | $0.81 | $4,050.00 |
The following journals can then be posted
| Journal entries | Units | DR $ | CR $ |
| Myer Shares (77600/MYR.AX) | 36,010 | $32,048.90 | |
| Premier Dividend (23900/PMV.AX) | $28,250.00 | ||
| Premier Capital Reduction (77600/PMV.AX) | 0 | $4,050.00 | |
| Non-deductible (37500/PMV.AX) | $251.10 | ||
| $32,300.00 | $32,300.00 |
Premier In-Specie Distribution Calculator
Download the Premier In-Specie Distribution Calculator to excel. Enter the units held by the entity to calculate the components of the in-specie distribution.
Steps to post the journal
- Add a New Transaction.
From the Main Toolbar, hover over Accounting Under Add New Transaction, Select Journal - Enter the details of the In-Specie Distribution.
- Once the details are filled, select Post.
The following transactions will be posted.
Non Tax-Deductible Expenses
To learn how change an expense to non-tax deductible, press here.