Private ruling: Employee share trust
Date of advice: 5 December 2025
Published: 27 January 2026
Ruling period: 1 July 20XX to 30 June 20YY
Date scheme commenced: In a particular income year

Ruling: Q1: Will the irretrievable cash contributions that are made by the Company to the Trustee, to fund the subscription for, or acquisition of, ordinary shares in the Company pursuant to the Plan be assessable income of the Trust under sections 6-5 or 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No | Q2: Will CGT event E5 happen at the time when a Participant of the Plan becomes absolutely entitled to the Company shares held by the Trustee? | A2: Yes | Q3: If CGT event E5 does happen, will a capital gain or capital loss made by the Trustee, as a result of CGT event E5 happening in relation to the Company shares, be disregarded under section 130-90 of the ITAA 1997,if the participants of the Plan acquire the shares for the same or less than the cost base of the shares in the hands of the Trustee? | A3: Yes | Q4: Will CGT event E7 happen in respect of the Company shares held by the Trustee? | A4: No | Q5: If CGT event E7 does happen, will a capital gain or capital loss made by the Trustee, as a result of CGT event E7 happening in relation to the Company shares, be disregarded under section 130-90 of the ITAA 1997,if the Participants of the Plan acquire the shares for the same or less than the cost base of the shares in the hands of the Trustee? | A5: Not necessary to rule | Q6: Will dividends and other income received by the Trustee, in respect of the Company shares it holds under the Plan but which have not yet been allocated to Participants of the Plan, be included in the calculation of the net income of the trust under section 95 of the Income Tax Assessment Act 1936 (ITAA 1936) and assessed to the Trustee under section 99A of that Act? | A6: Yes | Q7: Will the Trustee be entitled to a tax offset for the franking credits attached to the franked dividends it receives, in relation to the Company shares it holds under the Plan, but which have not yet been allocated to Participants of the Plan, under Subdivision 207-B of the ITAA 1997? | A7: Yes

Relevant facts and circumstances: The Company is a company that was incorporated in Australia with its ordinary shares listed on the Australian Securities Exchange. The Company is an Australian resident for income tax purposes and is the head company of a consolidated group. The Company and Subsidiary Co are employer entities of the consolidated group. The Company derives assessable income from its business activities. The Company operates an employee share scheme as part of its remuneration and reward program for the group's employees (the Plan). The Plan is governed by the Plan Rules. Under the Plan, Participants are granted Restricted Stock Units to acquire shares in the Company for no consideration. The Restricted Stock Units are subject to vesting conditions until the relevant vesting date. Upon vesting, the Participants may exercise their right and receive the relevant number of shares in the Company. The Company will make cash contributions to the Trustee from time to time to fund the acquisition of shares in the Company. These contributions are irretrievable and non-refundable because the Company and its subsidiaries are not beneficiaries of the Trust and are not entitled to any part of the Trust's fund (including shares held by the Trust). The cash contributions form part of the corpus of the Trust. The Company will incur costs associated with the services provided by the Trustee in respect of the ongoing administration and management of the Trust.

Relevant legislative provisions: Section 95 of the Income Tax Assessment Act 1936 | Section 99A of the Income Tax Assessment Act 1936 | Section 6-5 of the Income Tax Assessment Act 1997 | Section 6-10 of the Income Tax Assessment Act 1997 | Section 83A-10 of the Income Tax Assessment Act 1997 | Section 100-25 of the Income Tax Assessment Act 1997 | Section 104-75 of the Income Tax Assessment Act 1997 | Section 104-85 of the Income Tax Assessment Act 1997 | Section 130-85 of the Income Tax Assessment Act 1997 | Section 130-90 of the Income Tax Assessment Act 1997 | Subdivision 207-B of the Income Tax Assessment Act 1997