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

Schedule 3   Employee share schemes

Income Tax Assessment Act 1997

21   At the end of Subdivision 130-D

Add:

130-95 Share or right acquired under an employee share trust - 100% takeover or restructure

If:

(a) a *CGT event happens in relation to a *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 ) by the beneficiary of an *employee share trust; 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 the trustee of the employee share trust makes from the CGT event is disregarded.