Income Tax Assessment Act 1997

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Div 719 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdiv 719-B heading inserted by No 117 of 2002, s 3 and Sch 8 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 719-30(1) amended by No 56 of 2007 , s 3 and Sch 3 item 27, by substituting " *membership interests in an entity " for " *share in a company " , effective 12 April 2007. No 56 of 2007 , s 3 and Sch 3 item 39 contains the following application provision:

(1)
The amendment applies to acquisitions of stapled securities, and of rights to acquire stapled securities, on or after 1 July 2006.

(2)
In this item:

acquisition
has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .

S 719-30(2) substituted by No 56 of 2007 , s 3 and Sch 3 item 28, effective 12 April 2007. No 56 of 2007 , s 3 and Sch 3 item 39 contains the following application provision:

(1)
The amendment applies to acquisitions of stapled securities, and of rights to acquire stapled securities, on or after 1 July 2006.

(2)
In this item:

acquisition
has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .

S 719-30(2) formerly read:

719-30(2)
For the purposes of this Division, in determining whether an entity is a wholly-owned subsidiary of another entity, disregard particular ^* shares in a company if:

(a) the shares are covered by subsection (3); and

(b) the total number of those shares is not more than 1% of the number of ordinary shares in the company.

S 719-30(3) substituted for s 719-30(3), (4) and (5) by No 133 of 2009, s 3 and Sch 1 item 58, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . S 719-30(3) formerly read:

719-30(3)
A ^* share in a company is covered by this subsection if the share is beneficially owned by an entity and:

(a) the entity acquired (as defined in section 139G of the Income Tax Assessment Act 1936 ) the share either:

(i) in the circumstances described in subsection 139C(1) or (2) of that Act; or

(ii) by exercising a right the entity acquired (as so defined) in those circumstances; and

(b) all the shares in the company available for acquisition in those circumstances are ordinary shares and all the rights available for acquisition in those circumstances are rights to acquire ordinary shares; and

(c) if the entity acquired the share in those circumstances - at the time of the acquisition, at least 75% of the permanent employees (as defined in section 139GB of that Act) of the employer (as defined in section 139GA of that Act) were or had earlier been entitled to acquire in those circumstances:

(i) shares in the company or rights to acquire shares in the company; or

(ii) shares in a holding company (as defined in section 139GC of that Act) of the company or rights to acquire such shares; and

(d) the conditions in subsections 139CD(6) and (7) of that Act are met in relation to the acquisition of the share by the entity; and

(e) the company is not covered by section 139DF of that Act.

Note:

Section 139CD of the Income Tax Assessment Act 1936 sets out certain preconditions for shares and rights acquired under employee share schemes to be qualifying shares and qualifying rights. Section 139C of that Act explains when a share or right is acquired under an employee share scheme. Section 139DF prevents shares and rights relating to certain companies from being qualifying shares and rights.

S 719-30(3) substituted for s 719-30(3), (4) and (5) by No 133 of 2009, s 3 and Sch 1 item 58, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . S 719-30(4) formerly read:

719-30(4)
A ^* share may be disregarded under subsection (2) even though the condition in paragraph (3)(c) is not met, if the Commissioner has made a determination under subsection 139CD(8) of the Income Tax Assessment Act 1936 in relation to the share.

S 719-30(3) substituted for s 719-30(3), (4) and (5) by No 133 of 2009, s 3 and Sch 1 item 58, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . S 719-30(5) formerly read:

719-30(5)
A *membership interest of a particular kind in an entity that is beneficially owned by another entity is covered by this subsection if:

(a) the membership interest forms part of a stapled security (within the meaning of Division 13A of Part III of the Income Tax Assessment Act 1936 ); and

(b) the stapled security is treated as a *qualifying share because of Subdivision DB of that Division.

Note:

The kinds of membership interest that form part of a stapled security are an ordinary share and one or more other interests that are either shares or units in a unit trust: see section 139GCD of the Income Tax Assessment Act 1936 .

S 719-30(5) inserted by No 56 of 2007 , s 3 and Sch 3 item 29, effective 12 April 2007. No 56 of 2007 , s 3 and Sch 3 item 39 contains the following application provision:

(1)
The amendment applies to acquisitions of stapled securities, and of rights to acquire stapled securities, on or after 1 July 2006.

(2)
In this item:

acquisition
has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .

S 719-30 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).