Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 3/4)
Character Range: 2738445–2741165

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 interests
130‑D Employee share schemes
130‑E Exchangeable interests
130‑F Exploration investments

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 interests; and
         • shares acquired under an employee share scheme; and
         • exchangeable interests; and
         • exploration investments.
      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

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 in relation to the original equities.
 (2) The first element of your *cost base and *reduced cost base for the bonus equities includes:
 (a) for *shares—any part of the shares that are a *dividend (or taken to be a dividend under subsection 45(2) or 45C(1) of the Income Tax Assessment Act 1936); and
 (b) for units—any part of the other units that are or will be included in your assessable income.
You are taken to have *acquired the bonus equities when they were issued.
Note 1: There are special indexation rules for cost base modifications: see Division 114.
Note 2: The amounts of calls you pay on partly‑paid equities