Taxation Laws Amendment Act (No. 3) 2003 (101 of 2003)

Schedule 2   Employee share schemes

Part 2   Income Tax (Transitional Provisions) Act 1997

13   After Subdivision 130-C

Insert:

Subdivision 130-DA - Employee share schemes

130-80 Extension of trust holding period

(1) This section applies if:

(a) a share or right is held by an employee share trust at 5 pm (by legal time in the Australian Capital Territory) on 27 February 2001; and

(b) at the time that the share or right was acquired by the employee share trust it was possible to determine that the share or right would be acquired from the trust by another entity at a particular time or on the occurrence of a particular event; and

(c) the share or right is acquired by that other entity after that time or the occurrence of that event.

(2) If this section applies, the first element of the cost base and reduced cost base of the share or right is its market value (worked out under sections 139FA to 139FF of the Income Tax Assessment Act 1936) at the particular time, or on the occurrence of the particular event, referred to in paragraph (1)(b).