Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An amount received by a person upon the redemption of a Special Bond, other than a part of that amount paid as accrued interest, is not assessable income and is not exempt income of the person.
(2) Subsection (1) does not affect the operation of this Act in relation to the redemption of a Special Bond owned by a person where, if the Special Bond had been sold by that person at the time of the redemption:
(a) the proceeds of the sale would have been included in the assessable income of that person; or
(b) any profit arising from the sale would, disregarding section 26BB, have been included in the assessable income of that person.
(3) In this section, Special Bond means security of the Commonwealth issued under the Commonwealth Inscribed Stock Act 1911 ‑1946 and bearing on its face the words "Special Bond".