Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The cessation time for a right is the earliest of the following:
(a) the time when the taxpayer disposes of the right (other than by exercising it);
(b) the time when the employment in respect of which the right was acquired ceases;
(c) subject to subsection (3), if the right is exercised and there is a restriction preventing the taxpayer from disposing of the share acquired as a result of the exercise of the right or a condition that could result in the taxpayer forfeiting ownership of the share--the time when the last such restriction or condition ceases to have effect;
(d) subject to subsection (3), if the right is exercised and there is no such restriction or condition--the time when the right is exercised;
(da) if subsection (3) applies--the time when the taxpayer disposes of the share referred to in paragraph (3)(b);
(e) the end of the 10 year period starting when the taxpayer acquired the right.
(2) For the purposes of subsection (1), a taxpayer only ceases the employment in respect of which the right 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.
Note: Subdivision DA can affect whether the taxpayer is treated as having disposed of a right or ceased employment.
(3) Paragraphs (1)(c) and (d) do not apply in relation to a right if:
(a) a share has been or is acquired as a result of the exercise of the right; and
(b) because of section 139DQ, another share is treated, for the purposes of this Division, as if it were a continuation of that share.