With the likelihood of an off market buyback, would it be in my interests to sell my CBA shares into that?

I received shares in CBA from the demutualisation of Colonial many many years ago. I have left them in the bottom drawer to grow substantially with dividend reinvestment. With the likelihood of an off market buyback, it could be in my interests to sell them into that, as I have retired and only have my super pension as income nowadays (and CBA dividends) Where will I find records of the cost base and dividend reinvestment prices so I can determine capital gain? The capital gain is still likely to be much less than selling them on market. Is there any handy resource to help with this? Thank you for your consideration.

A: If your super is in the pension phase, you won’t have to worry about capital gains tax as your tax rate is 0%.

That said, this is what I have been able to dig up (I can’t verify the source……it is from an accounting group):

  • For the demutualisation of Colonial Mutual, the cost base was $3.31 per share;
  • When CBA purchased Colonial Mutual, shareholders were given 7 CBA shares for every 20 Colonial shares;
  • Hence, the cost base for your CBA shares is $9.457143

For the CBA Dividend Re-investment Plan, here is the link to CBA’s web page which has all the detail: https://www.commbank.com.au/about-us/investors/dividend-information.html


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