Income Tax Assessment Act 1997

Part 3-3 inserted by No 46 of 1998.

Div 134 inserted by No 46 of 1998.

S 134-1(1) amended by No 133 of 2009, s 3 and Sch 1 item 41, by substituting notes 3 and 4 for note 3, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . Note 3 formerly read:

Note 3:

Item 1 in the table is modified for shares or rights acquired at a discount (within the meaning of Subdivision C of Division 13A of Part III of the Income Tax Assessment Act 1936 ) under an employee share scheme - in certain circumstances you can be taken to have paid the market value for an option: see Subdivision 130-D and section 112-15 .

Note: No 133 of 2009 made the above amendment to " 134-1 " - presumably the amendment was intended to apply to s 134-1(1).

S 134-1(1) substituted by No 58 of 2006 , s 3 and Sch 3 item 3, applicable in relation to options exercised on or after 27 May 2005. S 134-1(1) formerly read:

134-1(1)
This table sets out the effects of the exercise of an option on the *cost bases and *reduced cost bases of the grantor and the entity that exercises the option (the grantee ).

Exercise of options
Item	In this situation:	Effect on cost base and reduced cost base:
1	Option binds grantor to *dispose of a *CGT asset or to issue *shares in a company (call option)	For the grantee The first element of the grantee ' s *cost base and *reduced cost base for the *CGT asset is what the grantee paid for the option plus any amount the grantee paid to exercise it
		For the grantor
		See section 116-65
.
2	Option binds grantor to *acquire a *CGT asset (put option)	For the grantor The first element of the grantor ' s *cost base and *reduced cost base for the asset acquired is any amount paid to exercise the option reduced by any payment received by the grantor for the option
		For the grantee
		The second element of the grantee ' s *cost base and *reduced cost base for the asset disposed of to the grantor includes any payment the grantee made to *acquire the option

Note 1:

If you granted an option, CGT event C3 or D2 may happen.

Note 2:

Item 1 in the table is modified for options granted before 20 September 1985: see section 134-1 of the Income Tax (Transitional Provisions) Act 1997 .

Note 3:

Item 1 in the table is modified for shares or rights acquired at a discount (within the meaning of Subdivision C of Division 13A of Part III of the Income Tax Assessment Act 1936 ) under an employee share scheme - in certain circumstances you can be taken to have paid the market value for an option: see Subdivision 130-D and section 112-15.

S 134-1(1) amended by No 173 of 2000 and No 94 of 1999.

S 134-1(4) amended by No 53 of 2002.

S 134-1(6) inserted by No 133 of 2003.

S 134-1 inserted by No 46 of 1998.