Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 130.80

Capital gains and losses

  (1)   Disregard any * capital gain or * capital loss to the extent that it results from a * CGT event if:

  (a)   the CGT event happens in relation to an * ESS interest you * acquire under an * employee share scheme; and

  (b)   the CGT event is not CGT event E4, G1 or K8; and

  (c)   if Subdivision   83A - B applies to the interest--the time of the acquisition is the time when the CGT event happens; and

  (d)   if Subdivision   83A - C applies to the interest:

  (i)   the time of the acquisition is the time when the CGT event happens; or

  (ii)   the CGT event happens on or before the * ESS deferred taxing point for the ESS interest.

  (2)   Subsection   (1) does not apply if:

  (a)   Subdivision   83A - C applies to the * ESS interest; and

  (b)   the * CGT event happens because you forfeit or lose the ESS interest (other than by disposing of it) on or before the * ESS deferred taxing point for the interest.

General acquisition rule

  (3)   Subsection   109 - 5(2) (about when you acquire a CGT asset) does not apply to a * CGT asset and a * CGT event if:

  (a)   the CGT asset is:

  (i)   a * share; or

  (ii)   a right to acquire a beneficial interest in a share; and

  (b)   the CGT event is CGT event A1; and

  (c)   you acquire an * ESS interest; and

  (d)   the ESS interest is a beneficial interest in the share or right; and

  (e)   Subdivision   83A - B or 83A - C (about employee share schemes) applies to the ESS interest.

Market value substitution rule

  (4)   Sections   112 - 20 and 116 - 30 (about the market value substitution rule) do not apply to the extent that they relate to:

  (a)   you acquiring an * ESS interest to which Subdivision   83A - C (about employee share schemes) applies; or

  (b)   you:

  (i)   forfeiting an ESS interest; or

  (ii)   forfeiting or losing an ESS interest that is a beneficial interest in a right (without you having disposed of the interest or exercised the right);

    if Subdivision   83A - B or 83A - C applies to the ESS interest (ignoring section   83A - 310); or

  (c)   you acquiring an ESS interest that:

  (i)   is a beneficial interest in a right; and

  (ii)   is an ESS interest to which the provisions referred to in paragraphs 83A - 33(1)(a) to (c) (about start ups) apply.