Income Tax Assessment Act 1997



Division 247 - Capital protected borrowings  

Operative provisions  

SECTION 247-30   Exercise or expiry of option  

If the *capital protection under a *capital protected borrowing is invoked:

(a) the borrower is taken to have exercised the put option; and

(b) any interest in a *share, unit in a unit trust or stapled security that is acquired by the lender or another entity under the *arrangement as a result of that capital protection being invoked is taken to have been disposed of by the borrower as a result of the exercise of the option.

If the *capital protection under a *capital protected borrowing is not invoked on or before the last occasion on which it could have been, the put option is taken to have expired.


If a borrower under a capital protected borrowing holds the protected things on capital account, the exercise or expiry of the put option may give rise to a capital gain or capital loss: see sections 104-25 (CGT event C2) and 134-1 (exercise of options).


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