Income Tax Assessment (1997 Act) Regulations 2021

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-315.09   BASE PERCENTAGES FOR CALCULATION PERCENTAGES OF 110% OR MORE  

83A-315.09(1)    
The value of the right worked out under this section, is the amount worked out using the following formula:

where:

additional percentage
, for a right with an exercise period specified in an item in column 1 of the table in subsection (2), is the percentage specified in column 3 of the item.

base percentage
, for a right with an exercise period specified in an item in column 1 of the table in subsection (2), is the percentage specified in column 2 of the item.

excess
is the amount worked out using the following formula, disregarding any fraction:

exercise period
for a right is the period, in months, from the particular day (referred to in section 83A-315.02 ) until the last day on which the right may be exercised.

83A-315.09(2)    
The following table sets out base percentages and additional percentages for the purposes of subsection (1).

Base percentages and additional percentages
Item	Column 1 Exercise period (months)	Column 2 Base percentage	Column 3 Additional percentage
1	168 to 180	13.3%	0.5%
2	156 to 168	13.3%	0.5%
3	144 to 156	13.3%	0.5%
4	132 to 144	13.3%	0.6%
5	120 to 132	13.3%	0.6%
6	108 to 120	13.3%	0.6%
7	96 to 108	13.2%	0.6%
8	84 to 96	13.0%	0.6%
9	72 to 84	12.8%	0.7%
10	60 to 72	12.5%	0.7%
11	48 to 60	12.1%	0.7%
12	36 to 48	11.4%	0.8%
13	24 to 36	10.5%	0.8%
14	18 to 24	9.9%	0.8%
15	12 to 18	9.2%	0.9%
16	9 to 12	8.8%	0.9%
17	6 to 9	8.3%	0.9%
18	3 to 6	7.8%	0.9%
19	0 to 3	7.5%	1.0%

Note:

The following assumptions were used to work out the base percentages:

(a) a risk-free interest rate of 4%;

(b) a dividend yield of 4%;

(c) volatility of 12%.

83A-315.09(3)    
If the exercise period is the top of one range in the table in subsection (2) and is also the bottom of another range in the table, it is taken to be in the lower range and not in the higher range.