Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_4:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/4)
Character Range: 444871–447539

128‑50  Joint tenants

 (1) This section has rules that are relevant if a *CGT asset is owned by joint tenants and one of them dies.

 (2) The survivor is taken to have *acquired (on the day the individual died) the individual's interest in the asset. If there are 2 or more survivors, they are taken to have acquired that interest in equal shares.

Note: Joint tenants are treated as owning a CGT asset in equal shares: see section 108‑7.

 (3) If the individual who died *acquired his or her interest in the asset on or after 20 September 1985, the first element of the *cost base of the interest each survivor is taken to have acquired is:

  The first element of the *reduced cost base of the interest each survivor is taken to have *acquired is worked out similarly.

Example: In 1999 2 individuals buy land for $50,000 as joint tenants. Each one is taken to have a 50% interest in it. On 1 May 2001 one of them dies.

 The survivor is taken to have acquired the interest of the individual who died on 1 May 2001. If the cost base of that interest on that day is $27,000, the survivor is taken to have acquired that interest for that amount.

 (4) If the individual who died *acquired his or her interest in the asset before 20 September 1985, the first element of the *cost base and *reduced cost base of the interest each survivor is taken to have acquired is:

Note: There is a special indexation rule for surviving joint tenants: see section 114‑10.

Division 130—Investments

Table of Subdivisions

 Guide to Division 130

130‑A Bonus shares and units

130‑B Rights

130‑C Convertible notes

130‑D Employee share schemes

Guide to Division 130

130‑1  What this Division is about

      This Division sets out the rules for these kinds of investments:

          • bonus shares and units; and

          • rights; and

          • convertible notes; and

          • shares acquired under an employee share scheme.

      Most are about modifying the cost base and reduced cost base of a CGT asset.

Subdivision 130‑A—Bonus shares and units

Guide to Subdivision 130‑A

Table of sections

130‑15 Acquisition time and cost base of bonus equities

Operative provisions

130‑20 Issue of bonus shares or units

130‑15  Acquisition time and cost base of bonus equities

[This is the end of the Guide]

Operative provisions

130‑20  Issue of bonus shares or units

 (1) This section sets out what happens if:

 (a) you own *shares in a company or units in a unit trust (the original equities); and

 (b) the company issues other shares, or the trustee issues other units, (the bonus equities) to you because it owes an amount to you