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I found the answer on this page.The convertible qualifies as a...

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Tarvold

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20/04/21

19:23

Post #: 52602056
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Originally posted by Headhunter: ↑

If the interest component has "accrued" over the term of the notes instead of being paid, then there is a real possibility that the convertible notes will be qualifying securities and accrued interest and the gain on conversion will be assessable to you. It can be a bit complex to ascertain whether a security is a traditional security or qualifying security (as you will need to go through its terms etc. and convertible notes are generally different from company to company issuing them) so i suggest talking to an accountant regarding the correct treatment of your specific convertivle notes.

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I found the answer on this page.
The convertible qualifies as a traditional security & therefore no gain is recognised on conversion & interest paid rolls over into the cost base.
https://www.ato.gov.au/Forms/You-and-your-shares-2020/?page=24

So that's good news
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