Taxation Ruling

IT 2516W

Income tax: exclusion from tax for discounts provided under employee share acquisition schemes

• Please note that the PDF version is the authorised version of this withdrawal notice.
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Notice of Withdrawal

Taxation Ruling IT 2516 is withdrawn with effect from 9 October 2025.

1. IT 2516 outlined how a legislative amendment affected the employee share scheme rules contained in former section 26AAAC of the Income Tax Assessment Act 1936. It explained:

•

requirements for application of the exclusion from assessability of the discount provided under employee share schemes

•

that the cost base of shares obtained under an employee share scheme for the purpose of calculating any capital gain or capital loss had to be reduced by the amount of the discount that was not assessed due to the application of former section 26AAAC.

2. Employee share schemes are now governed by Division 83A of the Income Tax Assessment Act 1997.

3. IT 2516 has no ongoing relevance, and is withdrawn without replacement.

Commissioner of Taxation
8 October 2025

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

References

ATO references:
NO 1-18VPZ3Z8

Business Line:  IAI