Ann: Update - ASX Enquiry, page-230

This is not intended as Tax Advice and/ or financial Advice - so please do your own research. However , essentially :-

Once the administrator or liquidator makes a declaration in writing that they have reasonable grounds to believe there is no likelihood that shareholders will receive any further distribution for their shares, a shareholder may be able to claim a capital loss. That is, you may claim the tax loss in the Financial year that the administrator or liquidator declares the shares worthless, or to have no value or negligible value. Under these circumstances, if you’re eligible, you may be able to declare the capital loss on your tax return for that year.


If you don’t choose to claim the capital loss in that year, you won’t be eligible to claim the capital loss until the shares are disposed of. Disposal usually occurs when the shares are sold or transferred to another owner.


However, a disposal could also occur when the company shares are essentially cancelled – either as a result of a court order or as part of a voluntary wind up of the company.