tax law on option conversion, page-2

I checked the ATO site this morning and what you say is correct.

The ATO site re option also states the following:

"Rights and options you paid to acquire from a company or trust – or that you acquired from another person

If you acquired your rights or options on or after 20 September 1985, they are treated in much the same way as any other CGT asset and are subject to CGT."

So if you have held your KIKO for over 12 months before the option expiry date, then it may be better to sell them on market (and therefore be entitled to the 50% CGT discount for the options) and then buy the options back or just buy KIK shares. Otherwise the 50% CGT discount may be lost.

I am no tax account but that seems to be the way it reads.

Any other views?