• Acquisition timing rules

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If the company or unit trust issued the rights or options to you and you did not pay for them, you are taken to have acquired them at the same time as you acquired the original shares or units.

    This means that if you acquired your original shares or units before 20 September 1985, the rights or options are also treated as having been acquired before that date. Therefore, if you sell those rights or options, any capital gain or loss is disregarded.

    If you acquired your original shares or units on or after 20 September 1985, the rights or options are subject to capital gains tax if a CGT event happens to them. If you sell them, CGT event A1 happens and you make a capital gain if the capital proceeds are more than your cost base.

    If you acquired the rights or options from another entity or you paid the company or unit trust for them, the normal rules for the acquisition of CGT assets apply. If you acquired the rights or options before 20 September 1985, any capital gain or loss when a later CGT event happens to them is disregarded. If you acquired them on or after 20 September 1985, the rights or options are subject to capital gains tax if a CGT event happens to them.

    Last modified: 18 Sep 2009QC 18323