VRCO, page-34

your accountant is wrong:


INCOME TAX ASSESSMENT ACT 1997 - SECT 134.1

Exercise of options

Option binds grantor to: (b) create (including grant or issue) a CGT asset (call option)

The first element of the grantee's cost base and reduced cost base for the CGT asset is what the grantee paid for the option (or to renew or extend it) plus any amount the grantee paid to exercise it

(4) A capital gain or capital loss the grantee makes from exercising the option is disregarded



INCOME TAX ASSESSMENT ACT 1997 - SECT 109.5

General acquisition rules
(1) In general, you acquire a CGT asset when you become its owner. In this case, the time when you acquire the asset is when you become its owner.



INCOME TAX ASSESSMENT ACT 1997 - SECT 109.10

When you acquire a CGT asset without a CGT event
This table sets out some specific rules for the circumstances in which, and the time at which, you acquire a CGT asset otherwise than as a result of a CGT event happening.

A company issues or allots equity interests or non-equity shares in the company to you...when contract is entered into or, if none, when equity interests or non-equity shares issued or allotted



Summary – how to treat rights or options

Answer 1

• The shares or units you acquired when you exercised the rights or options are subject to capital gains tax (CGT).
• The acquisition date of the shares or units is the date you exercised the rights or options to acquire the shares or units.
• The first element of the cost base and the reduced cost base of the shares or units is the sum of
  • the market value of the rights or options at the time you exercise them
  • the amount you pay for the shares or units when you exercise the rights or options
  • any amount included in your assessable income because you exercised the rights or options on or after 1 July 2001.
  • https://www.ato.gov.au/General/Capi...options-to-acquire-shares-or-units/?page=3#a1