Something for Option Holders to Consider, page-25

Straight from the ATO home pages as follows-open to discussion, I've highlighted relevant points.LP

https://www.ato.gov.au/General/Capi...shares-or-units/Exercising-rights-or-options/
Exercising rights or options

The date you exercise the rights or options to acquire shares or units is the acquisition date for the shares or units.

If you exercise the rights or options on or after 20 September 1985, some special rules apply for working out the cost base and reduced cost base of the shares or units you acquire.
These rules don't apply to rights or options to acquire shares under an employee share scheme.
Rights or options acquired on or after 20 September 1985

The first element of the cost base and reduced cost base for the shares or units you acquire when you exercise your rights or options is the sum of:

• the cost base for the rights or options (including any amount you paid for them)
• the amount you paid for the shares or units when you exercised the rights or options (except to the extent that amount is represented in the cost base of the rights or options at the time of exercise)
• any amount included in your assessable income because you exercised the rights or options on or after 1 July 2001.

-------------------------------------------------------------------------
Would be great to have this one clarified by a Tax Accountant.