Document ID: chunk:federal_register_of_legislation:C2025C00014:section:23k:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 23K (pt 1/2)
Character Range: 154183–156969

23K  Substitution of certain securities
 (1) In this section:
central borrowing authority means:
 (a) the New South Wales Treasury Corporation;
 (b) the Victorian Public Authorities Finance Agency;
 (c) the Victoria Transport Borrowing Agency;
 (d) the Queensland Government Development Authority;
 (e) the Treasurer of the State of Western Australia;
 (f) the South Australian Government Financing Authority;
 (g) the Local Government Finance Authority of South Australia;
 (h) any other public authority of a State, being a public authority that is empowered to issue securities in the manner referred to in paragraph (2)(a).
public authority includes a Minister of the Crown in right of a State, a municipal corporation and any other local government body.
security means stock, a bond or debenture, or any other document evidencing the indebtedness of a person, whether or not the debt is secured.
 (2) For the purposes of this section, a person shall be taken to have issued a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer if and only if:
 (a) the substituted security was issued by the person to the taxpayer in exchange for the surrender or transfer of, or otherwise in replacement or substitution for, the original security; and
 (b) the terms and conditions provided for by the substituted security were identical in all material respects to those provided for by the original security.
 (3) Where:
 (a) but for this subsection, a person would be taken to have issued a security (in this subsection referred to as the substituted security) to a taxpayer in substitution for another security (in this subsection referred to as the original security) held by the taxpayer; and
 (b) either or both of the following conditions is or are satisfied:
 (i) an amount was payable by the taxpayer by way of consideration for the issue of the substituted security; or
 (ii) an amount was payable to the taxpayer by way of consideration for the surrender, transfer, replacement or substitution of the original security;
the person shall not be taken for the purposes of this section to have issued the substituted security in substitution for the original security.
 (4) Where:
 (a) under terms and conditions provided for by a security, the day on which interest is payable in respect of a period is different from that on which interest is payable in respect of the same period under another security; and
 (b) the terms and conditions provided for by the securities are otherwise identical in all material respects;
the following provisions have effect:
 (c) if the days on which the interest is payable are separated by an interval