Income Tax (Transitional Provisions) Act 1997
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View history notePt 3-30 inserted by No 9 of 2007 , s 3 and Sch 1 item 25, effective 15 March 2007.
Div 295 inserted by No 9 of 2007 , s 3 and Sch 1 item 25, effective 15 March 2007.
Subdiv 295-B inserted by No 15 of 2007 , s 3 and Sch 1 item 266, applicable to the 2007-2008 income year and later years.
Despite section 130-40 of the Income Tax Assessment Act 1997 , the modifications in subsections (2) and (3) of this section apply if an entity exercises rights or options as mentioned in that section to acquire:
(a) shares in a company, or options to acquire shares in a company; or
(b) units in a unit trust, or options to acquire units in a unit trust;
and those rights or options are 30 June 1988 assets of the entity.
295-100(2)
The first element of the cost base of the shares, units or options is the sum of:
(a) the amount paid to exercise the rights or options; and
(b) the greater of the market value of the rights or options (at the end of 30 June 1988) and the cost base of the rights or options (on that day).
295-100(3)
The first element of the reduced cost base of the shares, units or options is the sum of:
(a) the amount paid to exercise the rights or options; and
(b) the lesser of the market value of the rights or options (at the end of 30 June 1988) and the cost base of the rights or options (on that day).
295-100(4)
The payment referred to in subsection (2) or (3) can include giving property. To the extent that the payment does, use the market value of the property in working out the amount of the payment.
295-100(5)
For indexation purposes, the amount referred to in paragraph (2)(b) is taken to have been incurred on 30 June 1988.
S 295-100 inserted by No 15 of 2007 , s 3 and Sch 1 item 266, applicable to the 2007-08 income year and later years.
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