Taxation Laws Amendment Act (No. 3) 2003 (101 of 2003)

Schedule 2   Employee share schemes

Part 1   Income Tax Assessment Act 1997

9   At the end of section 130-85

Add:

(3) However, if:

(a) the *share or right was *acquired from an employee share trust; and

(b) if the share is a *qualifying share or the right is a *qualifying right - the acquirer made an election under section 139E of the Income Tax Assessment Act 1936;

the first element of the *cost base and *reduced cost base of the share or right is its market value (worked out under sections 139FA to 139FF of the Income Tax Assessment Act 1936) when you first acquired a beneficial interest in the share or right.

Note: Section 130-80 of the Income Tax (Transitional Provisions) Act 1997 may affect the cost base or reduced cost base for shares or rights held by a trust at 5 pm (by legal time in the Australian Capital Territory) on 27 February 2001.