Flowchart 3.2

Treatment of bonus units issued on or after 20 September 1985

1. Did you acquire the original units on or after 20 September 1985?

2. Is any part of the bonus units included in your assessable income?

3. Is any part of the bonus units included in your assessable income?

4. Were the bonus units issued on or after 20 September 1985?

5. Are the bonus units partly paid?

6. Were the bonus units issued before 10 December 1986?

7. Before the sale of the bonus units were any further call payments made to the trust?

Answer 1

1. The bonus units are subject to capital gains tax.
2. The acquisition date of the bonus units is their date of issue.
3. The cost base is the amount included in assessable income, plus any calls on partly paid bonus units.

Answer 2

1. The bonus units are subject to capital gains tax.
2. The bonus units are acquired when the original units were acquired.
3. The cost base of each original and bonus unit is equal to
   • the cost of the original units divided by the total number of original and bonus units, plus
   • any calls on partly paid bonus units.
    

Answer 3

1. The bonus units are subject to capital gains tax.
2. The acquisition date of the bonus units is the date when the liability to pay the first call arises.
3. The cost base is the market value of the bonus units just before the liability to pay the first call arises, plus the amount of call payments made.

Answer 4

You are taken to have acquired the bonus units before 20 September 1985 and they are not subject to capital gains tax.