Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:1_1:p4
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/11)
Character Range: 9806–12376

a *qualifying right; or
 (ii) the original right is a qualifying right and you have made an election under section 139E of the Income Tax Assessment Act 1936 covering the original right; and
 (f) a *CGT event happens in relation to the derived share; and
 (g) if the CGT event is CGT event I1—you are not a temporary resident immediately before the event happens; and
 (h) you would make a *capital gain or *capital loss from the CGT event, and the capital gain or capital loss would not be disregarded, if you were an Australian resident (but not a temporary resident) when the CGT event happens; and
 (i) this section has not previously applied to you in relation to the original right or the derived share.

Note: Paragraph (a)—section 139DQ of the Income Tax Assessment Act 1936 applies for the purposes of this Subdivision to treat a matching share or right issued as part of a 100% takeover or restructure as a continuation of the share or right it matches.

 (3) To avoid doubt, paragraph (1)(e) or (2)(f) applies:
 (a) even if you are not a *temporary resident when the *CGT event happens; and
 (b) whether you are an Australian resident or a foreign resident when the CGT event happens.

Capital gain or loss

 (4) If you are a *temporary resident or a foreign resident when the *CGT event happens, you make a *capital gain or *capital loss from the CGT event.

Note: If you are an Australian resident (but not a temporary resident) when the CGT event occurs, neither Division 136 nor section 768‑915 prevents you having a capital gain or capital loss.

 (5) Subsection (4) has effect despite Division 136 and section 768‑915.

Amount of capital gain or capital loss for temporary residents and foreign residents

 (6) If you are a *temporary resident or a foreign resident when the *CGT event happens, the amount of the *capital gain or *capital loss is the amount of your adjusted notional gain or loss worked out under subsection (9).

Amount of capital gain or capital loss for Australian residents

 (7) If you are an Australian resident (but not a *temporary resident) when the *CGT event happens, the amount of the *capital gain or *capital loss is the sum of:
 (a) the amount that would be the amount of your capital gain or capital loss if this section did not apply to you; and
 (b) the amount of your adjusted notional gain 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