Qualifying and non-qualifying shares and rights

A share in a company will be a qualifying share under the former Division 13A rules if it satisfies all of the following requirements:

  • the share is acquired by you under an employee share scheme
  • the company is your employer or your employer's holding company
  • the shares or rights to shares available from the employee share scheme are ordinary shares or rights to ordinary shares
  • after acquisition of the share, you do not hold a legal or beneficial interest of more than 5% of the shares in the company
  • after acquiring the share you are not in a position to cast, or control the casting of, more than 5% of the votes in the company's general meeting, and
  • when you acquired the share, at least 75% of the permanent employees of your employer were, or at some earlier time had been, entitled to acquire shares or rights to shares from an employee share scheme of your employer or its holding company.

A qualifying right must satisfy the same requirements, except the last requirement above.

See also:

    Last modified: 17 Aug 2016QC 25098