Tax Laws Amendment (2006 Measures No. 2) Act 2006 (58 of 2006)
Schedule 3 CGT treatment of options
Income Tax Assessment Act 1997
1 Section 116-65
Repeal the section, substitute:
116-65 Disposal etc. of a CGT asset the subject of an option
(1) This section applies if:
(a) you granted, renewed or extended an option to create (including grant or issue) or *dispose of a *CGT asset; and
(b) another entity exercises the option; and
(c) because of the exercise of the option, you create (including grant or issue) or dispose of the CGT asset.
(2) The *capital proceeds from the creation (including grant or issue) or disposal include any payment you received for granting, renewing or extending the option.
(3) The payment can include giving property: see section 103-5.
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