Ann: Exercise of Options and Appendix 2A, page-22

You makes sense but the ATO website seems to contradict this when the options are granted rather than paid for, see below. Make of it what you will. I do not trade options but find the discussion interesting.

From ATO website....

No-cost rights or options

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

G