Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p50
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 50/59)
Character Range: 2656271–2659075

event C2 and CGT event C3 are the only relevant CGT events.
 (c) the demerged entity issues sufficient new ownership interests in itself with the result that owners of original interests in the head entity own at least 80% of the total ownership interests in the demerged entity; or
 (d) some combination of the processes referred to in paragraphs (a), (b) and (c) happens with the effect that members of the demerger group stop owning at least 80% of the total ownership interests owned by members of the demerger group in another member of the group.

125‑75  Exceptions to subsection 125‑70(2)

Employee share schemes
 (1) In working out whether the requirements in subsection 125‑70(2) are met, disregard each of the *ownership interests described in subsections (2) and (3) if, just before the *demerger, those interests (taking into account either or both of their number and value) represented not more than 3% of the total *ownership interests in the entity.
 (2) An *ownership interest, in a company, that is owned by an entity is disregarded under subsection (1) if:
 (a) the entity acquired a beneficial interest in the ownership interest under an *employee share scheme; and
 (b) these provisions apply to the beneficial interest:
 (i) Subdivision 83A‑B and the provisions referred to in paragraphs 83A‑33(1)(a) to (c); or
 (ii) Subdivision 83A‑B and the provisions referred to in paragraphs 83A‑35(1)(a) and (b); or
 (iii) Subdivision 83A‑C; and
 (c) the ownership interest is not a fully‑paid ordinary *share.
 (3) An *ownership interest, in a trust, that is owned by an entity is disregarded under subsection (1) if:
 (a) both of the following would apply if Division 83A (about employee share schemes) applied to ownership interests in trusts in the same way as it applies to *shares:
 (i) the entity acquired a beneficial interest in the ownership interest under an *employee share scheme;
 (ii) the provisions referred to in subparagraph (2)(b)(i), (ii) or (iii) apply to the beneficial interest; and
 (b) the ownership interest is not a fully‑paid unit.

Adjusting instruments
 (4) In working out whether the requirements in subsection 125‑70(2) are met, disregard each of the *ownership interests described in subsection (5) (adjusting instruments) if, just before the *demerger, those interests represented not more than 10%, or such greater percentage (not exceeding 17%) as is prescribed, of the ownership interests in the entity.
 (5) An *ownership interest in a *listed public company or a *listed widely held trust that is the *head entity of a *demerger group is disregarded under subsection (4) if:
 (a) the adjusting instrument was issued on terms that ensure that its value is not adversely affected by an *arrangement undertaken by the company or trust in relation to other