New Business Tax System (Debt and Equity) Act 2001 (163 of 2001)

Schedule 1 Debt and equity interests

Repeal the table, substitute:

Modifications on exercise of rights
Item	In this situation:	The modification is...
1	You exercise rights issued to you to acquire the shares, units or options.	The first element of your cost base for the shares, units or options is the sum of: (a) the cost base of the rights at the time of exercise; and (b) all the amounts to be added under subsection (6A). The first element of their reduced cost base is worked out similarly.
2	You exercise rights you acquired from another entity to acquire the shares, units or options.	The first element of your cost base for the shares, units or options is the sum of: (a) the cost base of the rights at the time of exercise; and (b) all the amounts to be added under subsection (6A). The first element of their reduced cost base is worked out similarly.
3	You exercise rights issued to you to acquire the shares, units or options, and you acquired the original shares or *convertible interests, or the original units or convertible interests, before 20 September 1985.	The first element of your cost base for the shares, units or options is the sum of: (a) the market value of the rights when they were exercised; and (b) all the amounts to be added under subsection (6A). The first element of their reduced cost base is worked out similarly.

Modifications on exercise of rights
Item	In this situation:	The modification is...
1	You exercise rights issued to you to acquire the shares, units or options.	The first element of your cost base for the shares, units or options is the sum of: (a) the cost base of the rights at the time of exercise; and (b) all the amounts to be added under subsection (6A). The first element of their reduced cost base is worked out similarly.
2	You exercise rights you acquired from another entity to acquire the shares, units or options.	The first element of your cost base for the shares, units or options is the sum of: (a) the cost base of the rights at the time of exercise; and (b) all the amounts to be added under subsection (6A). The first element of their reduced cost base is worked out similarly.
3	You exercise rights issued to you to acquire the shares, units or options, and you acquired the original shares or *convertible interests, or the original units or convertible interests, before 20 September 1985.	The first element of your cost base for the shares, units or options is the sum of: (a) the market value of the rights when they were exercised; and (b) all the amounts to be added under subsection (6A). The first element of their reduced cost base is worked out similarly.