Document ID: chunk:federal_register_of_legislation:C2014C00751:clause:1_1:p1
Version: federal_register_of_legislation:C2014C00751
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/13)
Character Range: 5246–8151

1  At the end of Part 2‑40
Add:

Division 83A—Employee share schemes

Table of Subdivisions
 Guide to Division 83A
83A‑A Objects of Division and key concepts
83A‑B Immediate inclusion of discount in assessable income
83A‑C Deferred inclusion of gain in assessable income
83A‑D Deduction for employer
83A‑E Miscellaneous

Guide to Division 83A

83A‑1  What this Division is about

      Your assessable income includes discounts on shares, rights and stapled securities you (or your associate) acquire under an employee share scheme.
      You may be entitled:

                (a) to have the amount included in your assessable income reduced; or
                (b) to have the income year in which it is included deferred.

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

Table of sections
83A‑5 Objects of Division
83A‑10 Meaning of ESS interest and employee share scheme

83A‑5  Objects of Division
  The objects of this Division are:
 (a) to ensure that benefits provided to employees under *employee share schemes are subject to income tax at the employees' marginal rates under *income tax law (instead of being subject to *fringe benefits tax law); and
 (b) to increase the extent to which the interests of employees are aligned with those of their employers, by providing a tax concession to encourage lower and middle income earners to acquire *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 certain conditions which seek to limit the concession to genuine schemes broadly available to all permanent employees who do not already have anything other than a minor interest in their employer.
      The income year in which you are taxed may be deferred if there is a real risk of forfeiture, or you acquired the shares or securities under particular salary sacrifice arrangements (see Subdivision 83A‑C).
      If you are a foreign resident, only the