Derivation of income - premiums held by Options Clearing House

When is an options trader, assessed under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) for premiums credited to their account by the Options Clearing House (OCH)?

An options trader is assessed under section 6-5 of the ITAA 1997 in the income year the premiums are credited to the taxpayer's OCH account.

The taxpayer deals in exchange traded options. The taxpayer has sold put options that do not expire for a number of years. The taxpayer's OCH account is credited with the premiums upon sale.

In determining when a taxpayer has derived an amount of ordinary income, subsection 6-5(4) of the ITAA 1997 provides that the taxpayer is taken to have received the amount when it is applied or dealt with in any way on the taxpayer's behalf or as the taxpayer directs.

Any premium credited to the taxpayer's account at the OCH is assessable in that income year.