Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 (133 of 2009)

Schedule 1   Employee share schemes

Part 1   Main amendments

Income Tax Assessment Act 1997

1   At the end of Part 2-40

Add:

Division 83A - Employee share schemes

Table of Subdivisions

Guide to Division 83A

83A-A Objects of Division and key concepts

83A-B Immediate inclusion of discount in assessable income

83A-C Deferred inclusion of gain in assessable income

83A-D Deduction for employer

83A-E Miscellaneous

Guide to Division 83A

83A-1 What this Division is about

Your assessable income includes discounts on shares, rights and stapled securities you (or your associate) acquire under an employee share scheme.

You may be entitled:

(a) to have the amount included in your assessable income reduced; or

(b) to have the income year in which it is included deferred.

Subdivision 83A-A - Objects of Division and key concepts

Table of sections

83A-5 Objects of Division

83A-10 Meaning of ESS interest and employee share scheme

83A-5 Objects of Division

The objects of this Division are:

(a) to ensure that benefits provided to employees under *employee share schemes are subject to income tax at the employees' marginal rates under *income tax law (instead of being subject to *fringe benefits tax law); and

(b) to increase the extent to which the interests of employees are aligned with those of their employers, by providing a tax concession to encourage lower and middle income earners to acquire *shares under such schemes.

83A-10 Meaning of ESS interest and employee share scheme

(1) An ESS interest , in a company, is a beneficial interest in:

(a) a *share in the company; or

(b) a right to acquire a beneficial interest in a share in the company.

(2) An employee share scheme is a *scheme under which *ESS interests in a company are provided to employees, or *associates of employees, (including past or prospective employees) of:

(a) the company; or

(b) *subsidiaries of the company;

in relation to the employees' employment.

Note: See section 83A-325 for relationships similar to employment.

Subdivision 83A-B - Immediate inclusion of discount in assessable income

Guide to Subdivision 83A-B

83A-15 What this Subdivision is about

Generally, a discount you receive on shares, rights or stapled securities you acquire under an employee share scheme is included in your assessable income when you acquire the beneficial interest in those shares, rights or securities.

You may be entitled to reduce the amount included in your assessable income if you meet certain conditions which seek to limit the concession to genuine schemes broadly available to all permanent employees who do not already have anything other than a minor interest in their employer.

The income year in which you are taxed may be deferred if there is a real risk of forfeiture, or you acquired the shares or securities under particular salary sacrifice arrangements (see Subdivision 83A-C).

If you are a foreign resident, only the part of the discount that relates to your employment in Australia is included in your assessable income.

Table of sections

Operative provisions

83A-20 Application of Subdivision

83A-25 Discount to be included in assessable income

83A-30 Amount for which discounted ESS interest acquired

83A-35 Reduction of amounts included in assessable income

Operative provisions

83A-20 Application of Subdivision

(1) This Subdivision applies to an *ESS interest if you acquire the interest under an *employee share scheme at a discount.

Note 1: This Subdivision does not apply if Subdivision 83A-C applies: see section 83A-105.

Note 2: If an associate of yours acquires an interest in relation to your employment, this Division applies as if you, rather than your associate, acquired the interest: see section 83A-305.

Note 3: Regulations made for the purposes of section 83A-315 may be relevant to working out whether you acquire the ESS interest at a discount.

(2) However, this Subdivision does not apply if the *ESS interest is a beneficial interest in a *share that you acquire as a result of exercising a right, if you acquired a beneficial interest in the right under an *employee share scheme.

83A-25 Discount to be included in assessable income

(1) Your assessable income for the income year in which you acquire the *ESS interest includes the discount given in relation to the interest.

(2) Treat an amount included in your assessable income under subsection (1) as being from a source other than an *Australian source to the extent that it relates to your employment outside Australia.

Note: For the CGT treatment of employee share schemes, see Subdivision 130-D.

83A-30 Amount for which discounted ESS interest acquired

For the purposes of this Act (other than this Division), the *ESS interest (and the *share or right of which it forms part) is taken to have been acquired for its *market value (rather than for its discounted value).

Note: Regulations made for the purposes of section 83A-315 may substitute a different amount for the market value of the ESS interest.

83A-35 Reduction of amounts included in assessable income

Reduction and income test

(1) Reduce the total amount included in your assessable income under subsection 83A-25(1) for an income year by the total of the amounts included in your assessable income under that subsection, for the income year, for *ESS interests to which subsections (3) to (9) of this section apply.

(2) However:

(a) do not reduce the total amount by more than $1,000; and

(b) only make the reduction if the sum of the following does not exceed $180,000:

(i) your taxable income for the income year (including any amount that would be included in your taxable income if you disregarded this section);

(ii) your *reportable fringe benefits total for the income year;

(iii) your *reportable superannuation contributions (if any) for the income year;

(iv) your *total net investment loss for the income year.

Employment

(3) This subsection applies to an *ESS interest in a company if, when you acquire the interest, you are employed by:

(a) the company; or

(b) a *subsidiary of the company.

Employee share scheme relates only to ordinary shares

(4) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, all the ESS interests available for acquisition under the scheme relate to ordinary *shares.

Integrity rule about share trading and investment companies.

(5) This subsection applies to an *ESS interest in a company unless, when you acquire the interest:

(a) the predominant business of the company (whether or not stated in its constituent documents) is the acquisition, sale or holding of *shares, securities or other investments (whether directly or indirectly through one or more companies, partnerships or trusts); and

(b) you are employed by the company; and

(c) you are also employed by any other company that is:

(i) a *subsidiary of the first company; or

(ii) a holding company (within the meaning of the Corporations Act 2001) of the first company; or

(iii) a subsidiary of a holding company (within the meaning of the Corporations Act 2001) of the first company.

Scheme must be non-discriminatory

(6) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, both:

(a) the employee share scheme; and

(b) any scheme for the provision of financial assistance in respect of acquisitions of ESS interests under the employee share scheme;

are operated on a non-discriminatory basis in relation to at least 75% of the permanent employees of your employer who have completed at least 3 years of service (whether continuous or non-continuous) with your employer and who are Australian residents.

No risk of losing interest or share under the conditions of the scheme

(7) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest:

(a) if the ESS interest is a beneficial interest in a *share - there is no real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it); or

(b) if the ESS interest is a beneficial interest in a right to acquire a beneficial interest in a *share:

(i) there is no real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it, exercising the right or letting the right lapse); and

(ii) there is no real risk that, under the conditions of the scheme, if you exercise the right, you will forfeit or lose the beneficial interest in the share (other than by disposing of it).

Minimum holding period

(8) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, at all times during the period that:

(a) starts when you acquire the interest; and

(b) ends at the earlier of:

(i) 3 years later; and

(ii) when you cease being employed by your employer;

the scheme is operated so that:

(c) you are not permitted to dispose of:

(i) any ESS interest (the scheme interest ) you acquire under the scheme; or

(ii) a beneficial interest in a *share you acquire as a result of a scheme interest;

before the earlier of:

(iii) the end of the period of 3 years after you acquire the scheme interest; and

(iv) when you cease being employed by your employer; and

(d) everyone else who acquires ESS interests under the scheme is subject to a corresponding restriction.

Note: This subsection is taken to apply in the case of a takeover or restructure: see subsection 83A-130(3).

5% limit on shareholding and voting power

(9) This subsection applies to an *ESS interest in a company if, immediately after you acquire the interest:

(a) you do not hold a beneficial interest in more than 5% of the *shares in the company; and

(b) you are not in a position to cast, or to control the casting of, more than 5% of the maximum number of votes that might be cast at a general meeting of the company.

Subdivision 83A-C - Deferred inclusion of gain in assessable income

Guide to Subdivision 83A-C

83A-100 What this Subdivision is about

If there is a real risk you might forfeit the share, right or stapled security you acquired under an employee share scheme, you don't include the discount in your assessable income when you acquired it. Instead, in the first income year you are able to dispose of the share, right or security, your assessable income will include any gain you have made to that time. If you cease employment earlier, or if 7 years pass, the gain is included in that income year instead.

A share or stapled security you acquire under salary sacrifice arrangements can also be subject to this deferred taxing point if you get no more than $5,000 worth of shares under those arrangements.

Table of sections

Main provisions

83A-105 Application of Subdivision

83A-110 Amount to be included in assessable income

83A-115 ESS deferred taxing point - shares

83A-120 ESS deferred taxing point - rights to acquire shares

83A-125 Tax treatment of ESS interests held after ESS deferred taxing points

Takeovers and restructures

83A-130 Takeovers and restructures

Main provisions

83A-105 Application of Subdivision

Scope of Subdivision

(1) This Subdivision applies, and Subdivision 83A-B does not apply, to an *ESS interest in a company if:

(a) Subdivision 83A-B would, apart from this section, apply to the interest (see section 83A-20); and

(b) subsections 83A-35(3), (4), (5) and (9) apply to the interest; and

(c) if the interest is a beneficial interest in a *share:

(i) subsection (2) of this section applies to the interest; and

(ii) subsection (3) or (4) applies to the interest; and

(d) if the interest is a beneficial interest in a right to acquire a beneficial interest in a share - subsection (3) applies to the interest.

Note: Subsections 83A-35(3), (4), (5), and (9) contain conditions relating to the following:

(a) your employment;

(b) the types of shares available under the employee share scheme;

(c) share trading and investment companies;

(d) your shareholding and voting power in the company.

Broad availability of schemes

(2) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest, at least 75% of the permanent employees of your employer who have completed at least 3 years of service (whether continuous or non-continuous) with your employer and who are Australian residents are, or at some earlier time had been, entitled to acquire:

(a) ESS interests under the scheme; or

(b) ESS interests in:

(i) your employer; or

(ii) a holding company (within the meaning of the Corporations Act 2001) of your employer;

under another employee share scheme.

Real risk of losing interest or share under the conditions of the scheme

(3) This subsection applies to an *ESS interest you acquire under an *employee share scheme if, when you acquire the interest:

(a) if the ESS interest is a beneficial interest in a *share - there is a real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it); or

(b) if the ESS interest is a beneficial interest in a right to acquire a beneficial interest in a share:

(i) there is a real risk that, under the conditions of the scheme, you will forfeit or lose the ESS interest (other than by disposing of it, exercising the right or letting the right lapse); or

(ii) there is a real risk that, under the conditions of the scheme, if you exercise the right, you will forfeit or lose the beneficial interest in the share (other than by disposing of it).

Salary sacrifice arrangement

(4) This subsection applies to an *ESS interest you acquire under an *employee share scheme during an income year at a discount if:

(a) the interest is provided:

(i) because you agreed to acquire the interest in return for a reduction in your salary or wages that would not have happened apart from the agreement; or

(ii) as part of your remuneration package, in circumstances where it is reasonable to conclude that your salary or wages would be greater if the interest was not made part of that package; and

(b) at the time you acquire the interest:

(i) the discount equals the *market value of the ESS interest; and

(ii) all of the ESS interests available for acquisition under the scheme are ESS interests to which subsection (3) applies, beneficial interests in *shares, or both; and

(iii) the governing rules of the scheme expressly state that this Subdivision applies to the scheme (subject to the requirements of this Act); and

(c) the total *market value of the *ESS interests in your employer and any holding company (within the meaning of the Corporations Act 2001) of your employer:

(i) that you acquire during the year under any employee share scheme or schemes; and

(ii) to which both this Subdivision and this subsection apply;

does not exceed $5,000.

(5) For the purposes of paragraph (4)(c), work out the *market value of each *ESS interest as at the time you acquire it.

Note: Regulations made for the purposes of section 83A-315 may substitute a different amount for the market value of the ESS interest.

83A-110 Amount to be included in assessable income

(1) Your assessable income for the income year in which the *ESS deferred taxing point for the *ESS interest occurs includes the *market value of the interest at the ESS deferred taxing point, reduced by the *cost base of the interest.

Note: Regulations made for the purposes of section 83A-315 may substitute a different amount for the market value of the ESS interest.

(2) Treat an amount included in your assessable income under subsection (1) as being from a source other than an *Australian source to the extent that it relates to your employment outside Australia.

Note: For the CGT treatment of employee share schemes, see Subdivision 130-D.

83A-115 ESS deferred taxing point - shares

Scope

(1) This section applies if the *ESS interest is a beneficial interest in a *share.

Meaning of ESS deferred taxing point

(2) The ESS deferred taxing point for the *ESS interest is the earliest of the times mentioned in subsections (4) to (6).

(3) However, the ESS deferred taxing point for the *ESS interest is instead the time you dispose of the interest, if that time occurs within 30 days after the time worked out under subsection (2).

No restrictions on disposing of share

(4) The first possible taxing point is the earliest time when:

(a) there is no real risk that, under the conditions of the *employee share scheme, you will forfeit or lose the *ESS interest (other than by disposing of it); and

(b) if, at the time you acquired the interest, the scheme genuinely restricted you immediately disposing of the interest - the scheme no longer so restricts you.

Cessation of employment

(5) The 2nd possible taxing point is the time when the employment in respect of which you acquired the interest ends.

Maximum time period for deferral

(6) The 3rd possible taxing point is the end of the 7 year period starting when you acquired the interest.

83A-120 ESS deferred taxing point - rights to acquire shares

Scope

(1) This section applies if the *ESS interest is a beneficial interest in a right to acquire a beneficial interest in a *share.

Meaning of ESS deferred taxing point

(2) The ESS deferred taxing point for the *ESS interest is the earliest of the times mentioned in subsections (4) to (7).

(3) However, the ESS deferred taxing point for the *ESS interest is:

(a) the time you dispose of the ESS interest (other than by exercising the right); or

(b) if you exercise the right - the time you dispose of the beneficial interest in the *share;

if that time occurs within 30 days after the time worked out under subsection (2).

No restrictions on disposing of right

(4) The first possible taxing point is the earliest time when:

(a) you have not exercised the right; and

(b) there is no real risk that, under the conditions of the *employee share scheme, you will forfeit or lose the *ESS interest (other than by disposing of it, exercising the right or letting the right lapse); and

(c) if, at the time you acquired the ESS interest, the scheme genuinely restricted you immediately disposing of the ESS interest - the scheme no longer so restricts you.

Cessation of employment

(5) The 2nd possible taxing point is the time when the employment in respect of which you acquired the interest ends.

Maximum time period for deferral

(6) The 3rd possible taxing point is the end of the 7 year period starting when you acquired the interest.

No restrictions on exercising right and disposing of share

(7) The 4th possible taxing point is the earliest time when:

(a) there is no real risk that, under the conditions of the scheme, you will forfeit or lose the *ESS interest (other than by disposing of it, exercising the right or letting the right lapse); and

(b) if, at the time you acquired the ESS interest, the scheme genuinely restricted you immediately exercising the right - the scheme no longer so restricts you; and

(c) there is no real risk that, under the conditions of the scheme, if you exercise the right, you will forfeit or lose the beneficial interest in the *share (other than by disposing of it); and

(d) if, at the time you acquired the ESS interest, the scheme genuinely restricted you immediately disposing of the beneficial interest in the share if you exercised the right - the scheme no longer so restricts you.

83A-125 Tax treatment of ESS interests held after ESS deferred taxing points

For the purposes of this Act (other than this Division), the *ESS interest (and the *share or right of which it forms part) is taken to have been acquired immediately after the *ESS deferred taxing point for the interest for its *market value, unless the ESS deferred taxing point occurs at the time the interest is disposed of.

Note: Regulations made for the purposes of section 83A-315 may substitute a different amount for the market value of the ESS interest.

Takeovers and restructures

83A-130 Takeovers and restructures

Object and scope

(1) The object of this section is to allow this Division to continue to apply if:

(a) at least one of the following applies:

(i) an *arrangement (the takeover ) is entered into that is intended to result in a company (the old company ) becoming a *100% subsidiary of another company;

(ii) *ESS interests in a company (the old company ) acquired under *employee share schemes can reasonably be regarded as having been replaced, wholly or partly, by ESS interests in one or more other companies as a result of a change (the restructure ) in the ownership (including the structure of the ownership) of the old company; and

(b) just before the takeover or restructure, you held ESS interests (the old interests ) in the old company that you acquired under an employee share scheme.

Treat new interests as continuations of old interests

(2) For the purposes of this Division, treat any *ESS interests (the new interests ) in a company (the new company ) that you acquire in connection with the takeover or restructure as a continuation of the old interests, to the extent that:

(a) as a result of the arrangement or change, you stop holding the old interests; and

(b) the new interests can reasonably be regarded as matching any of the old interests.

Note: In determining to what extent something can reasonably be regarded as matching any of the old interests, one of the factors to consider is the respective market values of that thing and of the old interests.

(3) Subsection 83A-35(8) (about the 3 year rule) is taken to apply to the *ESS interests.

(4) Subsections (2) and (3) only apply if the new interests relate to ordinary *shares.

Old interest not matched by new interests

(5) For the purposes of this Division, treat yourself as having disposed of the old interests to the extent that, in connection with the takeover or restructure, you acquire anything that:

(a) can reasonably be regarded as matching any of the old interests; but

(b) is not treated by subsection (2) as a continuation of those interests.

Continuation of your employment

(6) For the purposes of this Division, treat your employment by:

(a) the new company; or

(b) a *subsidiary of the new company; or

(c) a holding company (within the meaning of the Corporations Act 2001) of the new company; or

(d) a subsidiary of a holding company (within the meaning of the Corporations Act 2001) of the new company;

as a continuation of the employment in respect of which you acquired the old interests.

Apportionment of cost base of old interests

(7) Treat yourself as having given, as consideration for the assets mentioned in subsection (8), the amount worked out by apportioning among those assets, according to their respective *market values immediately after the takeover or restructure, the total of:

(a) the *cost bases of the old interests when you stop holding them; and

(b) the cost bases of the assets mentioned in paragraph (8)(b) immediately after the takeover or restructure (ignoring the effect of this subsection).

(8) The assets are:

(a) the things that:

(i) you acquired in connection with the takeover or restructure; and

(ii) can reasonably be regarded as matching the old interests;

(including all of the new interests); and

(b) in a case covered by subparagraph (1)(a)(ii) - any *ESS interests in the old company that:

(i) you held just before, and continue to hold just after, the restructure; and

(ii) that can reasonably be regarded as matching the old interests.

Exceptions

(9) This section only applies if:

(a) at or about the time you acquire the new interests, you are employed as mentioned in subsection (6); and

(b) at the time you acquire the new interests:

(i) you do not hold a beneficial interest in more than 5% of the *shares in the new company; and

(ii) you are not in a position to cast, or to control the casting of, more than 5% of the maximum number of votes that might be cast at a general meeting of the new company.

Subdivision 83A-D - Deduction for employer

Guide to Subdivision 83A-D

83A-200 What this Subdivision is about

You can deduct an amount for shares, rights or stapled securities you provide to your employees under an employee share scheme if they are eligible for a reduction in their assessable income under section 83A-35. The amount you can deduct is equal to that reduction.

You must defer any deduction you are entitled to for amounts you provide to finance your employees acquiring interests in shares, rights or stapled securities under an employee share scheme until the employees have actually acquired those interests.

Table of sections

Operative provisions

83A-205 Deduction for employer

83A-210 Timing of general deductions

Operative provisions

83A-205 Deduction for employer

(1) You can deduct an amount for an income year if:

(a) during the year you provided one or more *ESS interests to an individual under an *employee share scheme; and

(b) you did so as:

(i) the employer of the individual; or

(ii) a holding company (within the meaning of the Corporations Act 2001) of the employer of the individual; and

(c) section 83A-35 applies to reduce the amount included in the individual's assessable income under subsection 83A-25(1) in relation to some or all of the interests.

(2) Disregard paragraph 83A-35(2)(b) (income test) for the purposes of paragraph (1)(c) of this section.

(3) The amount of the deduction is the amount of the reduction mentioned in paragraph (1)(c).

Deduction to be apportioned if interest provided by multiple entities

(4) The amount of the deduction worked out under subsection (3) must be apportioned between 2 or more entities on a reasonable basis if the entities jointly provide an *ESS interest for which an amount can be deducted under subsection (1).

83A-210 Timing of general deductions

If:

(a) at a particular time, you provide another entity with money or other property:

(i) under an *arrangement; and

(ii) for the purpose of enabling an individual (the ultimate beneficiary ) to acquire, directly or indirectly, an *ESS interest under an *employee share scheme in relation to the ultimate beneficiary's employment (including past or prospective employment); and

(b) that particular time occurs before the time (the acquisition time ) the ultimate beneficiary acquires the *ESS interest;

then, for the purpose of determining the income year (if any) in which you can deduct an amount in respect of the provision of the money or other property, you are taken to have provided the money or other property at the acquisition time.

Subdivision 83A-E - Miscellaneous

Table of sections

83A-305 Acquisition by associates

83A-310 Forfeiture etc. of ESS interest

83A-315 Market value of ESS interest

83A-320 Interests in a trust

83A-325 Application of Division to relationships similar to employment

83A-330 Application of Division to ceasing employment

83A-335 Application of Division to stapled securities

83A-340 Application of Division to indeterminate rights

83A-305 Acquisition by associates

If an *associate (other than an *employee share trust) of an individual acquires an *ESS interest in relation to the individual's employment (including past or prospective employment), then, for the purposes of this Division:

(a) treat the interest as having being acquired by the individual (instead of the associate); and

(b) treat any circumstance, right or obligation existing or not existing in relation to the interest in relation to the associate as existing or not existing in relation to the individual; and

(c) treat anything done or not done by or in relation to the associate in relation to the interest as being done or not done by or in relation to the individual.

Example 1: The following are attributed to the employee, rather than to the associate:

(a) the associate's voting rights;

(b) the associate's ability or inability to dispose of the ESS interest;

(c) whether there is a real risk that the associate may lose the ESS interest;

(d) the associate's cost base for the ESS interest.

Example 2: If the associate disposes of the ESS interest, the employee is taken to have disposed of the ESS interest instead.

83A-310 Forfeiture etc. of ESS interest

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 by that individual to cease particular employment); 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-315 Market value of ESS interest

(1) Whenever this Division uses the *market value of an *ESS interest, instead use the amount specified in the regulations for the purposes of this section in relation to the interest, if the regulations specify such an amount.

(2) To avoid doubt, apply the rule in subsection (1) to the *market value component of any calculation for the purposes of this Division that involves market value.

Example: If the regulations specify an amount in relation to an ESS interest, use that amount instead of the market value of the interest in working out:

(a) whether there is a discount given in relation to interest; and

(b) if so - the amount of the discount.

83A-320 Interests in a trust

(1) This section applies if, at a time:

(a) you hold an interest in a trust whose assets include *shares; and

(b) that interest corresponds to a particular number of the shares (even if the interest does not correspond to particular shares).

(2) For the purposes of this Division, treat yourself as holding at that time a beneficial interest in each of a number of the *shares included in the assets of the trust equal to the number mentioned in paragraph (1)(b).

(3) If there are 2 or more classes of *shares included in the assets of the trust, this section operates separately in relation to each class as if the shares in that class were all the shares included in the assets of the trust.

(4) This section applies to rights to acquire beneficial interests in *shares in the same way it applies to shares.

Note: For the CGT treatment of employee share schemes, see Subdivision 130-D.

83A-325 Application of Division to relationships similar to employment

This Division applies to an individual covered by column 1 of an item in the table as if:

(a) he or she were employed by the entity referred to in column 2 of that item; and

(b) the thing referred to column 3 of that item constituted that employment.

Application of Division to relationships similar to employment

Item

Column 1

This Division applies to an individual who:

Column 2

as if he or she were employed by:

Column 3

and this constituted that employment:

1

receives, or is entitled to receive, *work and income support withholding payments (otherwise than as an employee)

the entity that pays or provides the work and income support withholding payments (or is liable to do so)

the relationship because of which the entity pays or provides the work and income support withholding payments to the individual (or is liable to do so).

2

is engaged in service in a foreign country as the holder of an office

the entity by whom the individual is so engaged

the holding of the office.

3

provides services to an entity (other than services covered by a previous item in this table and services provided as an employee)

the entity

the *arrangement between the individual and the entity under which those services are provided.

83A-330 Application of Division to ceasing employment

For the purposes of this Division, you are treated as ceasing employment when you are no longer employed by any of the following:

(a) your employer in that employment;

(b) a holding company (within the meaning of the Corporations Act 2001) of your employer;

(c) a *subsidiary of your employer;

(d) a *subsidiary of a holding company (within the meaning of the Corporations Act 2001) of your employer.

83A-335 Application of Division to stapled securities

(1) This Division applies in relation to a stapled security in the same way as it applies in relation to a *share in a company, if at least one of the *ownership interests that are stapled together to form the stapled security is a share in the company.

Note: This means the Division also applies to rights to acquire such a stapled security in the same way it applies to rights to acquire a share.

(2) This Division applies in relation to a stapled security in the same way as it applies in relation to an ordinary *share in a company, if at least one of the *ownership interests that are stapled together to form the stapled security is an ordinary share in the company.

(3) For the purposes of this Division, in relation to a stapled security or right to acquire a beneficial interest in a stapled security, a company is taken to include (as part of the company) each *stapled entity for the stapled security, if at least one of the *ownership interests that are stapled together to form the stapled security is a *share in the company.

83A-340 Application of Division to indeterminate rights

(1) This section applies if:

(a) you acquire a beneficial interest in a right; and

(b) the right later becomes a right to acquire a beneficial interest in a *share.

Example 1: You acquire a right to acquire, at a future time:

(a) shares with a specified total value, rather than a specified number of shares; or

(b) an indeterminate number of shares.

Example 2: You acquire a right under which the provider must provide you with either ESS interests or cash, whichever the provider chooses.

(2) This Division applies as if the right had always been a right to acquire the beneficial interest in the *share.