Income Tax Assessment Regulations 1997 (Repealed)
PART 2
-
LIABILITY RULES OF GENERAL APPLICATION
Division 83A
-
Employee share schemes
REGULATION 83A-315.09
TABLE 2 AND INSTRUCTIONS
83A-315.09(1)
The following table sets out the base percentages for calculation percentages of 110% or more.
83A-315.09(2)
From column 1 of Table 2, select the percentage that corresponds to the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period ). This percentage is called the base percentage .(a) a risk-free interest rate of 4%;
(b) a dividend yield of 4%;
(c) volatility of 12%.
83A-315.09(3)
From column 2 of Table 2, select the percentage that corresponds to the exercise period. This percentage is called the additional percentage .
83A-315.09(4)
Work out the result of the following formula. Disregard any fraction. The result is called the excess .
83A-315.09(5)
The value of the right is the amount worked out using the following formula:
83A-315.09(6)
If the exercise period is the top of one range in Table 2 and is also the bottom of another range in the table, it is taken to be in the lower range and not in the higher range.
View history note
Hide history noteThe following table sets out the base percentages for calculation percentages of 110% or more.
| Table 2 - Base percentages | ||
| Exercise period (months) | Column 1 | Column 2 |
| 168 to 180 | 13.3% | 0.5% |
| 156 to 168 | 13.3% | 0.5% |
| 144 to 156 | 13.3% | 0.5% |
| 132 to 144 | 13.3% | 0.6% |
| 120 to 132 | 13.3% | 0.6% |
| 108 to 120 | 13.3% | 0.6% |
| 96 to 108 | 13.2% | 0.6% |
| 84 to 96 | 13.0% | 0.6% |
| 72 to 84 | 12.8% | 0.7% |
| 60 to 72 | 12.5% | 0.7% |
| 48 to 60 | 12.1% | 0.7% |
| 36 to 48 | 11.4% | 0.8% |
| 24 to 36 | 10.5% | 0.8% |
| 18 to 24 | 9.9% | 0.8% |
| 12 to 18 | 9.2% | 0.9% |
| 9 to 12 | 8.8% | 0.9% |
| 6 to 9 | 8.3% | 0.9% |
| 3 to 6 | 7.8% | 0.9% |
| 0 to 3 | 7.5% | 1.0% |
83A-315.09(2)
From column 1 of Table 2, select the percentage that corresponds to the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period ). This percentage is called the base percentage .
Note:
The following assumptions were used to work out the base percentages:
83A-315.09(3)
From column 2 of Table 2, select the percentage that corresponds to the exercise period. This percentage is called the additional percentage .
83A-315.09(4)
Work out the result of the following formula. Disregard any fraction. The result is called the excess .
| 100 | × | [ Calculation percentage − 110%] |
83A-315.09(5)
The value of the right is the amount worked out using the following formula:
| Amount or lowest amount that must be paid to exercise the right | × | [ Base percentage + (Excess × Additional percentage)] |
83A-315.09(6)
If the exercise period is the top of one range in Table 2 and is also the bottom of another range in the table, it is taken to be in the lower range and not in the higher range.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.