Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:1_1:p5
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/11)
Character Range: 12153–14721

or loss worked out under subsection (9).

Example: George, a New Zealander, is granted shares (with a total market value at the time of $100,000) under an employee share scheme on 20 January 2006. He comes to Australia as a temporary resident on 1 January 2007 and completes the rest of the employment to which the shares relate in Australia. George elects to have the discount assessed in that income year. He then ceases to be a temporary resident but remains an Australian resident on 8 May 2008. At that time the shares have a market value of $80,000. George disposes of the shares on 30 June 2009 for $115, 000. George's capital gain for the purpose of paragraph (a) would be $35,000. Assume that the amount of the loss that accrued up to 8 May 2008 that is to be counted for the purpose of paragraph (b) is $9,000. For the year ending 30 June 2009, George would, as a result of subsection (7), make a capital gain of $26,000 (being $35,000 less $9,000).

 (8) If subsection (7) applies to the *CGT event, subsections 136‑40(3) and 768‑955(3) do not apply for the purposes of applying Division 115 in relation to the CGT event.

Adjusted notional gain or loss

 (9) To work out your adjusted notional gain or loss:
 (a) work out your notional gain or loss using section 768‑925; and
 (b) adjust your notional gain or loss using sections 768‑930, 768‑935 and 768‑940.

768‑925  Notional gain or loss

 (1) Your notional gain or loss is the *capital gain or *capital loss you would have had in relation to the *CGT event if, for the whole of the period set by subsections (2) and (3), you:
 (a) had been an Australian resident; and
 (b) had not been a *temporary resident.

 (2) The period starts:
 (a) in the case of section 768‑920 applying to the *share or right in relation to which the *CGT event happens because of subsection 768‑920(1):
 (i) if the share or right was acquired from an *employee share trust—when you first acquired a beneficial interest in the share or right; or
 (ii) if subparagraph (i) does not apply—when you *acquired that share or right; and
 (b) in the case of section 768‑920 applying to the *share in relation to which the *CGT event happens because of subsection 768‑920(2):
 (i) if the share was acquired from an *employee share trust—when you first acquired a beneficial interest in the original right; or
 (ii) if subparagraph (i) does not apply—when you *acquired the original right.

 (3) The period ends when the *CGT event happens.

 (4) If you are an Australian resident (but not a *temporary resident) when the *CGT event