Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The cessation time for a share is the time when the taxpayer acquires the share if:
(a) there is no restriction preventing the taxpayer from disposing of the share before a particular time; and
(b) the scheme under which the share was acquired did not have any conditions that could result in the taxpayer forfeiting ownership of the share.
(2) If subsection (1) does not apply, the cessation time for a share is the earliest of the following:
(a) the time when the taxpayer disposes of the share;
(b) subject to subsection (4), the later of:
(i) the time when any restriction preventing the taxpayer from disposing of the share ceases to have effect; and
(ii) the time when any condition that could result in the taxpayer forfeiting ownership of shares ceases to have effect;
(c) the time when the employment in respect of which the share was acquired ceases;
(d) the end of the 10 year period starting when the taxpayer acquired the share.
(3) For the purposes of subsection (2), a taxpayer only ceases the employment in respect of which the share was acquired when the taxpayer is no longer employed by any of the following:
(a) the employer of the taxpayer in that employment;
(b) a holding company of the employer;
(c) a subsidiary of the employer or of a holding company of the employer.
(4) Paragraph (2)(b) does not apply in relation to a share that, because of section 139DQ, is treated, for the purposes of this Division, as if it were a continuation of a share acquired under an employee share scheme.
Note: Subdivision DA can affect whether the taxpayer is treated as having disposed of a share or ceased employment.