Income Tax Assessment Act 1997
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-40
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RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS
Division 83A
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Employee share schemes
Subdivision 83A-B
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Immediate inclusion of discount in assessable income
Operative provisions
SECTION 83A-35 Reducing amounts included in assessable income - other cases
Reduction and income test
83A-35(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 (6) and (7) of this section;
(b) section 83A-45 (about further conditions).
83A-35(2)
However:
(a) do not reduce the total amount by more than $1,000; and
(b) only make the reduction if the sum of the following does not exceed $180,000:
(c) subsection (1) does not apply if section 83A-33 (about start ups) reduces the amount to be included in your assessable income for the income year for the *ESS interests.
83A-35(3)
(Repealed by No 105 of 2015)
83A-35(4)
(Repealed by No 105 of 2015)
83A-35(5)
(Repealed by No 105 of 2015)
Scheme must be non-discriminatory
83A-35(6)
This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, both:
(a) the employee share scheme; and
(b) any scheme for the provision of financial assistance in respect of acquisitions of ESS interests under the employee share scheme;
No risk of losing interest or share under the conditions of the scheme
83A-35(7)
This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest:
(a) if the ESS interest is a beneficial interest in a *share - there is no real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it); or
(b) if the ESS interest is a beneficial interest in a right to acquire a beneficial interest in a *share:
83A-35(8)
(Repealed by No 105 of 2015)
83A-35(9)
(Repealed by No 105 of 2015)
View history note
Hide history noteSECTION 83A-35 Reducing amounts included in assessable income - other cases
Reduction and income test
83A-35(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 (6) and (7) of this section;
(b) section 83A-45 (about further conditions).
83A-35(2)
However:
(a) do not reduce the total amount by more than $1,000; and
(b) only make the reduction if the sum of the following does not exceed $180,000:
(i) your taxable income for the income year (including any amount that would be included in your taxable income if you disregarded this section, but not including your *assessable FHSS released amount for the income year);
(ii) your *reportable fringe benefits total for the income year;
(iii) your *reportable superannuation contributions (if any) for the income year;
(iv) your *total net investment loss for the income year; and
(c) subsection (1) does not apply if section 83A-33 (about start ups) reduces the amount to be included in your assessable income for the income year for the *ESS interests.
83A-35(3)
(Repealed by No 105 of 2015)
83A-35(4)
(Repealed by No 105 of 2015)
83A-35(5)
(Repealed by No 105 of 2015)
Scheme must be non-discriminatory
83A-35(6)
This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, both:
(a) the employee share scheme; and
(b) any scheme for the provision of financial assistance in respect of acquisitions of ESS interests under the employee share scheme;
are operated on a non-discriminatory basis in relation to at least 75% of the permanent employees of your employer who have completed at least 3 years of service (whether continuous or non-continuous) with your employer and who are Australian residents.
No risk of losing interest or share under the conditions of the scheme
83A-35(7)
This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest:
(a) if the ESS interest is a beneficial interest in a *share - there is no real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it); or
(b) if the ESS interest is a beneficial interest in a right to acquire a beneficial interest in a *share:
(i) there is no real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it, exercising the right or letting the right lapse); and
(ii) there is no real risk that, under the conditions of the scheme, if you exercise the right, you will forfeit or lose the beneficial interest in the share (other than by disposing of it).
83A-35(8)
(Repealed by No 105 of 2015)
83A-35(9)
(Repealed by No 105 of 2015)
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