Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If a taxpayer has acquired a share or right under an employee share scheme, the assessable income of the taxpayer includes the discount given in relation to the share or right.
Note: Employee share scheme is defined in section 139C.
(1A) However, for any period during which the taxpayer is a non‑resident, the discount is not included under subsection (1) in the assessable income of the taxpayer to the extent that the discount is given in respect of, or for or in relation directly or indirectly to, the taxpayer's engagement in foreign service that relates to the acquisition of the share or right.
Note: Foreign service is defined in section 139GBA.
When the discount is to be included
(2) Unless subsection (2A) or (3) applies, the discount is included in the taxpayer's assessable income of the year of income in which the share or right is acquired.
(2A) Unless subsection (3) applies, if the taxpayer:
(a) acquired the share or right while the taxpayer was not an employee; and
(b) subsequently became an employee while holding the share or right;
the discount is included in the taxpayer's assessable income in the year of income in which, after the acquisition, the taxpayer first becomes an employee in respect of employment or services that affect the acquisition or holding of the share or right.
Note: Subsection 139GA(2) limits the meaning of employee in this subsection, so that engagement in foreign service is not of itself sufficient.
(3) If the share or right is a qualifying share or right and the taxpayer has not made an election under section 139E covering the share or right, the discount is included in the taxpayer's assessable income of the year of income in which the cessation time (see sections 139CA and 139CB) occurs.