Draft Taxation Determination

TD 93/D64

Income tax: capital gains: how will Divisions 10 and 11 of Part IIIA of the Income Tax Assessment Act 1936 apply to options or rights issued by a company to shareholders, if the existing shares in respect of which the options or rights are issued consist of pre- and post-CGT shares?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/80.

FOI status:

draft only - for comment


Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. As the options or rights issued in respect of existing shares are deemed to be acquired on the date the existing shares were acquired, the options or rights must be apportioned between the pre- and post-CGT shares.


G Ltd issues options to all its shareholders. Shareholder A is issued 60,000 options for nil consideration.
A's existing shares were originally acquired as follows:

10,000 shares acquired 30 July 1985 (1/3 of total existing shares: pre-CGT)
20,000 shares acquired 30 November 1987 (2/3 of total existing shares: post-CGT)

Accordingly, the 60,000 options will be deemed to have been acquired as follows:

20,000 options (1/3 of 60,000) deemed to have been acquired 30 July 1985 (pre-CGT)
40,000 options (2/3 of 60,000) deemed to have been acquired 30 November 1987 (post-CGT)

Commissioner of Taxation
18 March 1993



ISSN 1038 - 8982

Related Rulings/Determinations:

TD 33
TD 93/D63

Subject References:
deemed acquisition date

Legislative References:
ITAA Part IIIA Divisions 10
ITAA Part IIIA Divisions 11