Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 4/5)
Character Range: 2766014–2768638

employee share trust
 (4) An employee share trust, for an *employee share scheme, is a trust whose sole activities are:
 (a) obtaining *shares or rights in a company; and
 (b) ensuring that *ESS interests in the company that are beneficial interests in those shares or rights are provided under the employee share scheme to employees, or to *associates of employees, of:
 (i) the company; or
 (ii) a *subsidiary of the company; and
 (c) other activities that are merely incidental to the activities mentioned in paragraphs (a) and (b).

130‑90  Shares held by employee share trusts

Shares held for future acquisition under employee share schemes
 (1A) Disregard any *capital gain or *capital loss made by an *employee share trust to the extent that it results from a *CGT event, if:
 (a) immediately before the event happens, an *ESS interest is a *CGT asset of the trust; and
 (b) either of the following subparagraphs applies:
 (i) the event is CGT event E5, and the event happens because a beneficiary of the trust becomes absolutely entitled to the ESS interest as against the trustee;
 (ii) the event is CGT event E7, and the event happens because the trustee *disposes of the ESS interest to a beneficiary of the trust; and
 (c) Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the ESS interest.

Shares held to satisfy the future exercise of rights acquired under employee share schemes
 (1) Disregard any *capital gain or *capital loss made by an *employee share trust, or a beneficiary of the trust, to the extent that it results from a *CGT event, if:
 (a) the CGT event is CGT event E5 or E7; and
 (b) the CGT event happens in relation to a *share; and
 (c) the beneficiary had acquired a beneficial interest in the share by exercising a right; and
 (d) the beneficiary's beneficial interest in the right was an *ESS interest to which Subdivision 83A‑B or 83A‑C (about employee share schemes) applied.
 (2) Subsection (1A) or (1) does not apply if the beneficiary acquired the beneficial interest in the *share for more than its *cost base in the hands of the *employee share trust at the time the *CGT event happens.

130‑95  Shares and rights in relation to ESS interests
  For the purposes of Part 3‑1 (Capital gains and losses: general topics) and this Part, treat a *CGT event that happens in relation to a *share or right in the same way as a CGT event that happens in relation to an *ESS interest, if:
 (a) Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the ESS interest; and
 (b) the ESS interest forms part of the share or right.

130‑97  Application of certain