Document ID: chunk:federal_register_of_legislation:C2014C00751:clause:1_1:p5
Version: federal_register_of_legislation:C2014C00751
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/13)
Character Range: 15317–18126

83A‑100  What this Subdivision is about

      If there is a real risk you might forfeit the share, right or stapled security you acquired under an employee share scheme, you don't include the discount in your assessable income when you acquired it. Instead, in the first income year you are able to dispose of the share, right or security, your assessable income will include any gain you have made to that time. If you cease employment earlier, or if 7 years pass, the gain is included in that income year instead.
      A share or stapled security you acquire under salary sacrifice arrangements can also be subject to this deferred taxing point if you get no more than $5,000 worth of shares under those arrangements.

Table of sections

Main provisions
83A‑105 Application of Subdivision
83A‑110 Amount to be included in assessable income
83A‑115 ESS deferred taxing point—shares
83A‑120 ESS deferred taxing point—rights to acquire shares
83A‑125 Tax treatment of ESS interests held after ESS deferred taxing points

Takeovers and restructures
83A‑130 Takeovers and restructures

Main provisions

83A‑105  Application of Subdivision

Scope of Subdivision
 (1) This Subdivision applies, and Subdivision 83A‑B does not apply, to an *ESS interest in a company if:
 (a) Subdivision 83A‑B would, apart from this section, apply to the interest (see section 83A‑20); and
 (b) subsections 83A‑35(3), (4), (5) and (9) apply to the interest; and
 (c) if the interest is a beneficial interest in a *share:
 (i) subsection (2) of this section applies to the interest; and
 (ii) subsection (3) or (4) applies to the interest; and
 (d) if the interest is a beneficial interest in a right to acquire a beneficial interest in a share—subsection (3) applies to the interest.
Note: Subsections 83A‑35(3), (4), (5), and (9) contain conditions relating to the following:
(a) your employment;
(b) the types of shares available under the employee share scheme;
(c) share trading and investment companies;
(d) your shareholding and voting power in the company.

Broad availability of schemes
 (2) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, at least 75% of the permanent employees of your employer who have completed at least 3 years of service (whether continuous or non‑continuous) with your employer and who are Australian residents are, or at some earlier time had been, entitled to acquire:
 (a) ESS interests under the scheme; or
 (b) ESS interests in:
 (i) your employer; or
 (ii) a holding company (within the meaning of the Corporations Act 2001) of your employer;
  under another employee share scheme.

Real risk of losing interest or share under the conditions of the scheme
 (3) This subsection applies to an *ESS interest you acquire