Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_118:p1
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 118 (pt 1/3)
Character Range: 126210–128779

118  Application of amendments

Definitions

(1) In this item:
CGT amendments means the amendments made by items 7 to 32 of this Schedule.
debt and equity test amendments means the amendments made by this Schedule (other than the CGT amendments).

Application of debt and equity test amendments

(2) The debt and equity test amendments apply to transactions that take place on or after 1 July 2001. This is so whether the interest in relation to which the transaction takes place was issued before, or is issued on or after, that date. This subitem has effect subject to any election made under subitem (6).

Application of the CGT amendments

(3) The amendments made by items 7 to 11 of this Schedule apply to:
 (a) equity interests issued or allotted; and
 (b) options granted;
on or after 1 July 2001.

(4) The amendments made by items 12 to 32 of this Schedule apply to the conversion of a convertible interest, or the exercise of a right, on or after 1 July 2001.

(5) Section 130‑40 of the Income Tax Assessment Act 1997 applies to all convertible notes acquired before 20 September 1985 as if they were convertible interests.

Application of debt and equity test amendments to interests issued before 1 July 2001

(6) If an interest was issued before 1 July 2001, the debt and equity test amendments:
 (a) apply only to transactions that take place in relation to the interest on or after 1 July 2004 if the issuer of the interest does not make an election under paragraph (b); and
 (b) apply to transactions that take place in relation to the interest on or after 1 July 2001 if the issuer elects to have this paragraph apply to the interest.

(7) For the purposes of subitem (6), an interest is taken to be issued on or after 1 July 2001 if:
 (a) the interest is issued on or after that date; or
 (b) the interest is issued before that date; and:
 (i) the terms of the interest are altered on or after that date; or
 (ii) the interest is rolled over on or after that date; or
 (iii) the original term of the interest is extended on or after that date.
In applying subparagraph (b)(i), disregard minor alterations that do not affect rights and obligations in relation to the interest.

(9) If paragraph (6)(a) applies to an interest:
 (a) the interest is disregarded for the purposes of paragraph 164‑10(1)(b) and subsection 164‑15(3) of the Income Tax Assessment Act 1997; and
 (b) section 164‑15 of the Income Tax Assessment Act 1997 applies to the interest as if references in paragraph 164‑15(3)(b) and subsection 164‑15(4) to 1 July 2001 were references to