Distributions

The following table details the distributions paid to investors during the year ended 30 June 2011. Information on determining your cost base is provided below.

The distribution components during the year ended 30 June 2011 were as follows:

To assist investors in their understanding of distributions and in completing their tax returns, an Annual Tax Guide and Annual Distribution Statement is sent to investors, and information on determining your cost base is provided below.

What is the cost base of Securities in AIX?

Australian Infrastructure Fund (AIX) investors hold stapled securities (Security) that consist of a fully paid ordinary share in Australian Infrastructure Fund Limited (the Company) and a unit in the Australian Infrastructure Fund Trust (the Trust).  The share and unit are 'stapled' as 'one'.  This means that they can only be transferred together and are quoted by the ASX as a single unit quotation.

The following cost base information may be relevant to investors who are residents of Australia for tax purposes and hold their units in the Company and Trust on capital account. 

When is it important to apportion my cost base?

For capital gains tax (CGT) purposes a share in the Company and a unit in the Trust are CGT separate assets, with their own separate tax cost base or reduced tax cost base. 

As AIFT has paid tax deferred distributions and may from time to time make returns of capital, the CGT outcome for some investors on the disposal of their Securities or on receipt of tax deferred distributions or returns of capital may differ depending on whether the investor determines the cost base or reduced tax cost base of the respective share and unit components separately or uses the total cost base or reduced cost base in determining the relevant capital gain or loss. 

For example, where you receive tax-deferred distributions or a return of capital from the Trust, they reduce the cost base of the units but do not affect the tax cost base of the shares.  If over time the accumulated tax deferred distributions and returns of capital exceed the original cost base of the units, a capital gain would arise. To calculate whether you have made a capital gain on your AIX units as a result of receiving tax-deferred distributions or returns of capital which exceed the original CGT cost base of the units, you will need to calculate the tax cost base that relates specifically to your AIX units. 

All investors should maintain records of their cost base with regard to their personal circumstances.

How do I calculate my cost base?

You calculate the tax cost base of a share or unit by apportioning the overall cost base of the Security on a 'reasonable' basis between the share and unit.  Investors will need to make their own decision regarding the 'reasonable' basis they will apply in their own particular circumstances.  However, using the net asset value (NAV) of the unit and share at the time you acquired your Securities is generally accepted as reasonable.

The NAV value split between the Trust and the Company is shown below at reporting dates and may assist you in this process. The splits are based on audited NAV valuations.

This summary does not take into account your particular needs, investment objectives or individual circumstances. If you are unsure of appropriate treatment, we recommend that you seek your own independent taxation advice for clarification according to your individual circumstances. Where investors hold their investment on a basis other than capital account e.g. revenue treatment or as trading stock, or are not residents of Australia, they should seek their own independent tax advice.

Allocation of cost base to 30 June 2011 for AIX Stapled Entities