Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/21)
Character Range: 1624654–1627528

concession for acquiring shares under such schemes.

83A‑10  Meaning of ESS interest and employee share scheme
 (1) An ESS interest, in a company, is a beneficial interest in:
 (a) a *share in the company; or
 (b) a right to acquire a beneficial interest in a share in the company.
 (2) An employee share scheme is a *scheme under which *ESS interests in a company are provided to employees, or *associates of employees, (including past or prospective employees) of:
 (a) the company; or
 (b) *subsidiaries of the company;
in relation to the employees' employment.
Note: See section 83A‑325 for relationships similar to employment.

Subdivision 83A‑B—Immediate inclusion of discount in assessable income

Guide to Subdivision 83A‑B

83A‑15  What this Subdivision is about

      Generally, a discount you receive on shares, rights or stapled securities you acquire under an employee share scheme is included in your assessable income when you acquire the beneficial interest in those shares, rights or securities.
      You may be entitled to reduce the amount included in your assessable income if you meet one of 2 sets of conditions.
      If you are a foreign resident, only the part of the discount that relates to your employment in Australia is included in your assessable income.

Table of sections

Operative provisions
83A‑20 Application of Subdivision
83A‑25 Discount to be included in assessable income
83A‑30 Amount for which discounted ESS interest acquired
83A‑33 Reducing amounts included in assessable income—start ups
83A‑35 Reducing amounts included in assessable income—other cases
83A‑45 Further conditions for reducing amounts included in assessable income

Operative provisions

83A‑20  Application of Subdivision
 (1) This Subdivision applies to an *ESS interest if you acquire the interest under an *employee share scheme at a discount.
Note 1: This Subdivision does not apply if Subdivision 83A‑C applies: see section 83A‑105.
Note 2: If an associate of yours acquires an interest in relation to your employment, this Division applies as if you, rather than your associate, acquired the interest: see section 83A‑305.
 (2) However, this Subdivision does not apply if the *ESS interest is a beneficial interest in a *share that you acquire as a result of exercising a right, if you acquired a beneficial interest in the right under an *employee share scheme.

83A‑25  Discount to be included in assessable income
 (1) Your assessable income for the income year in which you acquire the *ESS interest includes the discount given in relation to the interest.
Note: Regulations made for section 83A‑315 may be relevant to working out whether you acquire the ESS interest at a discount.
 (2) Treat an amount included in your assessable income under subsection (1) as being from a source other than an *Australian source to the extent that it relates to