INCOME TAX ASSESSMENT REGULATIONS 1997

PART 2 - LIABILITY RULES OF GENERAL APPLICATION  

Division 83A - Employee share schemes  

REGULATION 83A-315.09   TABLE 2 AND INSTRUCTIONS  

83A-315.09(1)  


The following table sets out the base percentages for calculation percentages of 110% or more.


Table 2 - Base percentages
Exercise period (months) Column 1 Column 2
168 to 180 13.3% 0.5%
156 to 168 13.3% 0.5%
144 to 156 13.3% 0.5%
132 to 144 13.3% 0.6%
120 to 132 13.3% 0.6%
108 to 120 13.3% 0.6%
96 to 108 13.2% 0.6%
84 to 96 13.0% 0.6%
72 to 84 12.8% 0.7%
60 to 72 12.5% 0.7%
48 to 60 12.1% 0.7%
36 to 48 11.4% 0.8%
24 to 36 10.5% 0.8%
18 to 24 9.9% 0.8%
12 to 18 9.2% 0.9%
9 to 12 8.8% 0.9%
6 to 9 8.3% 0.9%
3 to 6 7.8% 0.9%
0 to 3 7.5% 1.0%

83A-315.09(2)  
From column 1 of Table 2, select the percentage that corresponds to the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period ). This percentage is called the base percentage .

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)  
    From column 2 of Table 2, select the percentage that corresponds to the exercise period. This percentage is called the additional percentage .

    83A-315.09(4)  
    Work out the result of the following formula. Disregard any fraction. The result is called the excess .


    100 × [ Calculation percentage - 110%]

    83A-315.09(5)  
    The value of the right is the amount worked out using the following formula:


    Amount or lowest amount that must be paid to exercise the right × [ Base percentage + (Excess × Additional percentage)]

    83A-315.09(6)  


    If the exercise period is the top of one range in Table 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.



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