Tax Laws Amendment (2007 Measures No. 1) Act 2007 (56 of 2007)

Schedule 3   Employee share schemes and stapled securities

Part 2   Consequential amendments

Income Tax Assessment Act 1997

21   At the end of Subdivision 130-D

Add:

130-97 Stapled securities

(1) This section sets out what happens if you *acquire a stapled security (within the meaning of Division 13A of Part III of the Income Tax Assessment Act 1936) that:

(a) is treated as a *qualifying share because of Subdivision DB of that Division; or

(b) because of section 139DQ of that Act is treated, for the purposes of that Division, as if it were a continuation of:

(i) a qualifying share acquired under an *employee share scheme; or

(ii) another stapled security (within the meaning of that Division) that is treated as a qualifying share because of Subdivision DB of that Division.

(2) The provisions (the applied provisions ) of Part 3-1, this Part (except this section), Subdivision 768-R and Division 855 apply, with the modifications set out in subsections (3), (4) and (5), in relation to each *CGT asset that forms part of the stapled security in the same way as the applied provisions apply in relation to:

(a) a CGT asset that is a *share *acquired under an *employee share scheme; and

(b) a CGT asset that is a *qualifying share.

Note 1: The assets that form part of a stapled security are an ordinary share and one or more other interests that are either shares or units in a unit trust: see section 139GCD of the Income Tax Assessment Act 1936.

Note 2: There are modifications to this application in subsections 115-30(1A) and (1B).

(3) The applied provisions apply as if an election under section 139E of the Income Tax Assessment Act 1936 in relation to the stapled security were an election in relation to each of the assets.

(4) The applied provisions apply as if the *cessation time for the stapled security were the cessation time for each of the assets.

Modification relating to cost base and reduced cost base

(5) Subsection (6) applies for the purposes of the application, in relation to a *CGT asset that forms part of a stapled security, of a provision of this Subdivision providing that the first element of the *cost base and *reduced cost base of a *share is its market value (worked out under sections 139FA to 139FF of the Income Tax Assessment Act 1936) at a time.

(6) The first element of the *cost base and *reduced cost base of a *CGT asset that forms part of the stapled security is so much of the market value (worked out under sections 139FA to 139FF of the Income Tax Assessment Act 1936) of the stapled security at that time as is reasonably attributable to the asset.