Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:8:p1
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 8 (pt 1/2)
Character Range: 42654–45412

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Part 2‑40—Rules affecting employees and other taxpayers receiving PAYG withholding payments

Division 83A—Employee share schemes

Subdivision 83A‑A—Objects of Division and key concepts

83A‑5.01  Object of Division 83A
   For the purposes of Division 83A of the Act, this Division preserves rules under the former Division 13A of Part III of the Income Tax Assessment Act 1936 about valuing unlisted rights to acquire shares under an employee share scheme.

Subdivision 83A‑E—Miscellaneous

83A‑315.01  Value of certain ESS interests
 (1) For the purposes of subsection 83A‑315(1) of the Act, the amount specified, in relation to an ESS interest that is an unlisted right that must be exercised within 15 years after the day when the beneficial interest in the right was acquired is, at the choice of the individual:
 (a) the market value of the right; or
 (b) the value worked out in accordance with sections 83A‑315.02 to 83A‑315.09.
Note: The meaning of market value is affected by Subdivision 960‑S of the Act. For example, section 960‑410 affects how the market value of a non‑cash benefit is worked out.
 (2) However, if the deferred taxing point for the ESS interest is:
 (a) the day when the individual disposes of the interest (other than by exercising the right); or
 (b) if the individual exercises the right—the day when the individual disposes of the beneficial interest in the share acquired by exercising the right;
the amount specified in relation to the right is the market value of the right or share acquired by exercising the right.

83A‑315.02  Valuing unlisted rights
 (1) The value of the unlisted right on a particular day is the greater of:
 (a) the market value, on the particular day, of the share that may be acquired by exercising the right, less the lowest amount that must be paid to exercise the right to acquire the beneficial interest in the share; and
 (b) subject to sections 83A‑315.03 and 83A‑315.04, the value, on the particular day, of the right to acquire the beneficial interest in the share worked out in accordance with sections 83A‑315.05 to 83A‑315.09.
 (2) In working out the value of a right for the purposes of this Division, anything that would prevent or restrict conversion of the right to money is to be disregarded.

83A‑315.03  Exercise price of right nil or cannot be determined
  If the lowest amount that must be paid to exercise the right to acquire the beneficial interest in a share is nil or cannot be determined, the value of the right on a particular day is the same as the market value of the share on that day.

83A‑315.04  Value of beneficial interests
  To avoid doubt, if an individual acquires the beneficial interest in