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  • Convertible notes

    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

    A convertible note is another type of investment you can make in a company or unit trust. A convertible note earns interest on the amount you pay to acquire the note until the note's expiry date. On expiry of the note, you can either ask for the return of the money paid or convert that amount to acquire new shares or units.

    Convertible notes you acquired after 10 May 1989 will generally not be subject to CGT if you sold or disposed of them before they converted into shares. Instead, any gain you make is included on your tax return as ordinary income or any loss you make is included as a deduction. For more information, get the publication You and your shares.

    If you have sold or disposed of a convertible note that you acquired before 11 May 1989, please contact the business enquiries line on 13 24 78. When you phone make sure you know the date you acquired the convertible note as this may affect the tax treatment.

    Last modified: 25 Feb 2020QC 27448