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

Schedule 3   CGT treatment of options

Income Tax Assessment Act 1997

2   Section 116-70

Repeal the section, substitute:

116-70 Option requiring both acquisition and disposal etc.

(1) This section applies if:

(a) you granted, renewed or extended an option; and

(b) the option requires you both to *acquire, and to create (including grant or issue) or *dispose of, a *CGT asset.

(2) The option is treated as 2 separate options and half of the *capital proceeds from the grant, renewal or extension is attributed to each option.