Document ID: chunk:federal_register_of_legislation:C2008A00091:clause:1_2
Version: federal_register_of_legislation:C2008A00091
Segment Type: clause
Provision Reference: sch 1 cl 2
Character Range: 2703–3755

2  At the end of Division 59
Add:

59‑40  Issue of rights

 (1) The *market value, as at the time of issue (the issue time), of rights issued to you:
 (a) by a company to *acquire *shares in that company; or
 (b) by a trustee of a unit trust to acquire units in that trust;
is not assessable income and is not *exempt income as at the issue time if the conditions in subsection (2) are satisfied.

 (2) The conditions are as follows:
 (a) at the issue time, you must already own *shares in the company or units in the unit trust (the original interests);
 (b) the rights must be issued to you because of your ownership of the original interests;
 (c) the original interests and the rights must not be *revenue assets or *trading stock at the issue time;
 (d) the rights must not have been acquired (within the meaning of section 139G of the Income Tax Assessment Act 1936) under an *employee share scheme;
 (e) the original interests and the rights must not be *traditional securities;
 (f) the original interests must not be *convertible interests.