Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 26C

             (1)  Where:

                     (a)  a taxpayer disposes of a prescribed security by sale, gift, conversion or otherwise and the value of the security on the day of the disposal exceeds the cost of the security to the taxpayer; or

                     (b)  a prescribed security owned by a taxpayer is redeemed and the amount received by the taxpayer upon the redemption exceeds the cost of the security to the taxpayer;

an amount equal to the excess shall be included in the assessable income of the taxpayer.

             (2)  For the purposes of this section:

                     (a)  where a prescribed security is disposed of to a person by sale, gift or otherwise, that person shall be deemed to have purchased it at a cost equal to its value on the day of the disposal; and

                     (b)  where a person who owns a prescribed security dies:

                              (i)  that person shall be deemed to have sold the security on the day of his death; and

                             (ii)  the person upon whom the security devolves by reason of the death shall be deemed to have purchased it at a cost equal to its value on the day of the death.

             (4)  In this section:

"prescribed security" means:

                     (a)  a seasonal security as defined by, section 4 of the Loan (Short‑term Borrowings) Act 1959 ; or

                     (b)  any stock or other security issued by the Commonwealth that does not bear interest;

and includes an interest in any such seasonal security, stock or other security.

"stock" means Commonwealth Government Inscribed Stock or Australian Consolidated Inscribed Stock.