CBA Buy Back - How to Enter into ShareSight?

Interested in how to best handle the recently completed CBA buy back and the currently open Woolworths buyback.

Is this two (or even three) transactions - a dividend, a share sale, and possibly also an third transaction for the 7.56 per share which is the amount by which the Tax Value exceeds the Buy-Back Price?

I can see there’s an old article from a Woolworths buyback from a couple of years ago: How to handle Woolworths Share BuyBack | Sharesight Australia Help but this doesn’t talk about the excess tax value aspect.

These sorts of buybacks are (despite the discount to market price) pretty tax effective ways to create a capital loss for holdings you’ve held for a while (especially in a low tax rate environment like a super fund), especially if you have capital gains to offset.


@BJS for the CBA buyback, you’ll enter a sell/cancellation trade for $21.66 for the capital component. Then for the dividend component, manually create a dividend and enter the franked amount and franking credit accordingly.

The CGT calculation will be based on $29.22, not $21.66 (see outlined in red below):

It might be worth adding a comment or leaving a note to add $7.56 when running CGT Report. An example of how to do this is to change the sell/cancellation price from 21.66 to 29.22 and run the CGT report


It looks like you want to break the link between the sell price of 21.66 that you want to feed into your bank account so that balances, and the sell price of 29.22 so your CGT report provides you with the correct CGT calculation outcome.

@Jack_Sharesight, are there any plans to add tax value adjustments to sharesight (as this sort of thing is, unfortunately, all too common)? It seems a bit like an AMIT cost base increase or decrease in the way it feeds into end of year reporting.

Come to think of it, @Jack_Sharesight could you acheive the right outcome by adding in a cost base adjustment transaction?

I raised the question with my accountant, and we resolved the following - noting I post from SS to Xero so need to reconcile cash.

  1. For cash purposes I have to record a sell price of $21.66. Otherwise, the cash entry won’t match.

  2. We have to remember that the taxable capital gain is different from that recorded in Xero and Share sight. We therefore raise a manual entry in Xero for the difference between the cash loss and the taxable loss

Here’s the example - with 424 shares sold into the buy-back

424 sold with a CGT cost base (per SS) of $52.18/share ($22,124) and sold for $21.66/share ($9,183.84 proceeds) entries are:

  1. Posted automatically by SS to Xero
    Dr Cash 9,183.84
    dr loss 12,940.48
    Cr investment 22,124.32

  2. Tax value manual journal
    Manual journal to adjust the capital loss by $3,205.44 (424 x $7.56) the other side of the entry would have to be an expense account – called something like “Buy back difference” that would not be tax deductible, but that will not affect Share sight.
    Dr buy-back diff $3,205.44
    Cr loss $3,205.44

[This amount will be a difference in the rec between SS CGT report and Xero]

Thanks, @mwse, that’s really helpful.

Hoping we get an official answer from the Sharesight team on how to do it within Sharesight as well (without the only answer being having to make a note to remember to edit the CGT report at the end of the year).

The CGT and income reports are what justify the sharesight subscription for me - these ceasing to work without manual edits on top mean that renewing is not a no-brainer.

This approach works for me given the need to balance cash rec with tax rec.

Note I think this CGT difference also applies to the recent Metcash (MTS) buyback

I believe the adjustment is $3.66 (Tax Market Value) LESS $3.52 (Buy-back price) = $0.14/share non-deductible portion of capital loss

Metcash - Aug 21

Will need to keep an eye out for same in WOW