Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-40 - RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS  

Division 83A - Employee share schemes  

Subdivision 83A-E - Miscellaneous  

SECTION 83A-310   Forfeiture etc. of ESS interest  

83A-310(1)    
This Division (apart from this Subdivision) is taken never to have applied in relation to an *ESS interest acquired by an individual under an *employee share scheme if:

(a) disregarding this section, an amount is included in the individual ' s assessable income under this Division in relation to the interest; and

(b) either:

(i) the individual forfeits the interest; or

(ii) in the case of an ESS interest that is a beneficial interest in a right - the individual forfeits or loses the interest (without having disposed of the interest or exercised the right); and

(c) the forfeiture or loss is not the result of:

(i) a choice made by the individual (other than a choice to which subsection (2) applies); or

(ii) a condition of the scheme that has the direct effect of protecting (wholly or partly) the individual against a fall in the *market value of the interest.

83A-310(2)    

This subsection applies to the following choices by the individual:

(a) a choice to cease particular employment;

(b) in the case of an *ESS interest that is a beneficial interest in a right:

(i) a choice not to exercise the right before it lapsed; or

(ii) a choice to allow the right to be cancelled.