Tax Laws Amendment (2006 Measures No. 2) Act 2006 (58 of 2006)

Schedule 3   CGT treatment of options

Income Tax Assessment Act 1997

1   Section 116-65

Repeal the section, substitute:

116-65 Disposal etc. of a CGT asset the subject of an option

(1) This section applies if:

(a) you granted, renewed or extended an option to create (including grant or issue) or *dispose of a *CGT asset; and

(b) another entity exercises the option; and

(c) because of the exercise of the option, you create (including grant or issue) or dispose of the CGT asset.

(2) The *capital proceeds from the creation (including grant or issue) or disposal include any payment you received for granting, renewing or extending the option.

(3) The payment can include giving property: see section 103-5.