Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 83A.35

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 all of the following provisions apply:

  (a)   subsections   (6) and (7) of this section;

  (b)   section   83A - 45 (about further conditions).

  (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, but not including your * assessable FHSS released amount for the income year);

  (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; and

  (c)   subsection   (1) does not apply if section   83A - 33 (about start ups) reduces the amount to be included in your assessable income for the income year for the * ESS interests.

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).