Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-40 - RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS  

Division 83A - Employee share schemes  

Subdivision 83A-B - Immediate inclusion of discount in assessable income  

Operative provisions

SECTION 83A-33   Reducing amounts included in assessable income - start ups  

83A-33(1)    
Reduce the total amount included in your assessable income under subsection 83A-25(1) for an income year by the total of the amounts included in your assessable income under that subsection, for the income year, for *ESS interests to which all of the following provisions apply:

(a) subsections (2) to (6) of this section;

(b) section 83A-45 (about further conditions);

(c) for ESS interests that are beneficial interests in *shares - subsection 83A-105(2) (about broad availability of schemes).

No equity interests listed on a stock exchange

83A-33(2)    
This subsection applies to an *ESS interest in a company (the first company ) if no *equity interests in any of the following companies are listed for quotation in the official list of any *approved stock exchange at the end of the first company ' s most recent income year before you acquired the interest:

(a) the first company;

(b) any *subsidiary of the first company at the end of that income year;

(c) any holding company (within the meaning of the Corporations Act 2001 ) of the first company at the end of that income year;

(d) any subsidiary of a holding company (within the meaning of that Act) of the first company at the end of that income year.

Note:

For identifying any holding company, see also subsection (7).

Incorporated for less than 10 years

83A-33(3)    
This subsection applies to an *ESS interest in a company if:

(a) the company (the first company ); and

(b) each of the other companies referred to in subsection (2);

was incorporated by or under an *Australian law or *foreign law less than 10 years before the end of the first company ' s most recent income year before you acquired the interest.

Company has aggregated turnover not exceeding $50 million

83A-33(4)    
This subsection applies to an *ESS interest in a company if the company has an *aggregated turnover not exceeding $50 million for the company ' s most recent income year before the income year in which you acquire the ESS interest.

Note:

For working out aggregated turnover, see also subsection (7).

Conditions relating to market value

83A-33(5)    
This subsection applies to an *ESS interest in a company if:

(a) in the case of an ESS interest that is a beneficial interest in a *share - the discount on the ESS interest is no more than 15% of its *market value when you acquire it; or

(b) in the case of an ESS interest that is a beneficial interest in a right - the amount that must be paid to exercise the right is greater than or equal to the market value of an ordinary share in the company when you acquire the ESS interest.

Employer to be an Australian resident company

83A-33(6)    
This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, your employer is an Australian resident.

Disregard certain investments

83A-33(7)    
For the purposes of subsections (2) and (4), disregard:

(a) *eligible venture capital investments by a *VCLP, *ESVCLP or *AFOF; and

(b) investments by an *exempt entity that is a *deductible gift recipient;

when identifying any holding company (within the meaning of the Corporations Act 2001 ) or working out *aggregated turnover.