• Rights or options issued directly to you from a company or trust for no cost

    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

    The amount included in the cost base and reduced cost base of the shares or units you acquire depends on when you acquired your original shares or units.

    Where original shares or units were acquired before 20 September 1985

    The first element of the cost base and reduced cost base for the shares or units you acquire on exercising your rights or options is the sum of:

    • the market value of the rights or options at the time you exercise them, plus
    • the amount you pay for the shares or units, plus
    • if the rights or options are exercised on or after 1 July 2001 and, as a result, an amount is included in your assessable income - that amount.

    Where original shares or units were acquired on or after 20 September 1985

    The first element of the cost base and reduced cost base for the shares or units you acquire on exercising your rights or options is simply:

    • the amount you pay for the shares or units, plus
    • if the rights or options are exercised on or after 1 July 2001 and, as a result, an amount is included in your assessable income - that amount.
    Last modified: 04 Mar 2016QC 27527