Note
BGL does not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.
Overview
Bonus shares issued under a Bonus Option Plan (BOP)/Dividend Substitution Share Plan (DSSP) are generally not treated as income under Australian taxation law and not subject to imputation arrangements in the hands of the shareholder. Such ordinary shares are regarded as having been acquired at the same time as the existing holding for no extra cost and the cost of the existing holding then becomes the cost of the aggregate of the existing holding and the new ordinary shares.
However, Australian income tax laws contain anti-dividend streaming provisions which allow the Commissioner of Taxation to make a determination to treat shares acquired under certain bonus option plans as taxable dividends.
Please check the relevant company website for the recommended Tax Treatment.
Navigation
| From the Main Toolbar, go to Investments. | |
| Select Corporate actions from the list. |  |
Alternatively, you can access the Corporate Actions screen from the Transaction List:
Process a Bonus Option Plan
The Australian Taxation Office (ATO) website offer two different options depending on the Bonus Option Plan. ATO: Bonus Options
Where the ATO has deemed the Bonus Option Plan to not be a dividend.
If your bonus shares relate to other shares that you acquired on or after 20 September 1985 (referred to as your original shares), your bonus shares are taken to have been acquired on the date you acquired your original shares.
If you acquired your original shares at different times, you will have to work out how many of your bonus shares are taken to have been acquired at each of those times.
Where the ATO has deemed the Bonus Option Plan to be a dividend,
It is recommended to process the transaction using the Dividend Reinvestment Plan option on the Corporate Actions Screen.