This document contains frequently asked questions on former Division 13A of Part III of the Income Tax Assessment Act 1936.
The employee share scheme (ESS) rules contained in Division 13A that applied to shares or rights acquired before 1 July 2009 have been repealed effective from 14 December 2009. A new Division 83A in the Income Tax Assessment Act 1997 contains employee share scheme rules that apply to shares or rights acquired on or after 1 July 2009.
The new employee share scheme rules in Division 83A will apply to some shares or rights that were acquired before 1 July 2009 under transitional rules. These shares and rights are known as transitioned interests. However, the old rules in former Division 13A will still be relevant to determining if the interests you acquired before 1 July 2009 are transitioned interests. The previous rules in Division 13A will continue to apply (despite its repeal) to shares or rights that do not transition to the new rules.
This document contains information about the old rules in Division 13A.
For more information about the employee share scheme rules in Division 83A, see Employee share schemes - guide for employees.
For ESS interests that were acquired before 1 July 2009 to which a cessation time has not yet happened, the deferred taxing point will be calculated with reference to the rules in Division 13A. However, these ESS interests, as well as all ESS interests acquired on or after 1 July 2009 under Division 83A, will be subject to the new CGT rules outlined under Division 83A. This document contains information about the CGT rules that apply to ESS interests with a cessation time prior to 1 July 2009.
What are transitioned interests?
The new rules in Division 83A apply to shares or rights (ESS interests) that you acquired before 1 July 2009 if:
- they are qualifying shares or rights under the old rules, and
- you have not elected to be taxed upfront under the rules, and
- a cessation time has not happened to the shares or rights before 1 July 2009 under the old rules.
Under the transitional rules, some of the old rules in Division 13A are preserved. Also, some of the new rules do not apply, or are modified in the way that they apply to a transitioned interest.
What are not transitioned interests?
The old rules continue to apply to:
- a share or right that was not qualifying under the old rules
- a qualifying share or right where you elected to be taxed upfront under the old rules
- a qualifying share or right where a cessation time had happened to the share or right before 1 July 2009 under the old rules.
Last Modified: Thursday, 28 June 2012