Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005)

Schedule 3   Employee share schemes

Income Tax Assessment Act 1997

18   After subsection 130-83(1)

Insert:

(1A) If:

(a) a *CGT event happens in relation to the *share or right (the original share or right ); and

(b) it happens in connection with an acquisition (within the meaning of Subdivision C of Division 13A of Part III of the Income Tax Assessment Act 1936) of another share or right (the matching share or right ); and

(c) under section 139DQ of the Income Tax Assessment Act 1936 the matching share or right is treated, for the purposes of Division 13A of Part III of that Act, as if it were a continuation of the original share or right;

any *capital gain or *capital loss you make from the CGT event is disregarded.