What this ruling covers
The Australian Taxation Office has issued Class Ruling CR 2026/61, which sets out the income tax treatment for employees of Qoria Limited (an ASX-listed technology company) whose performance rights were cancelled on 10 July 2026 and replaced with performance rights in Aura Consolidated Group, Inc. - a new US company - on 17 July 2026, as part of a corporate restructure.
What the ruling confirms
The ruling confirms that the swap of Qoria performance rights for Aura performance rights does not trigger a tax event. The Aura performance rights are treated as a direct continuation of the old Qoria performance rights. Employment is also treated as continuous for tax purposes.
Scope and eligibility
This ruling applies only to individuals who meet all of the following conditions as stated in the ruling:
- They were Australian tax residents who held unvested or vested-but-unexercised Qoria performance rights immediately before the cancellation on 10 July 2026.
- They were employed by Aura Consolidated Group, Inc. or a subsidiary on 17 July 2026.
- No ESS deferred taxing point had been triggered on their Qoria performance rights before the cancellation.
The ruling applies for the income year 1 July 2026 to 30 June 2027.
Key actions
- Check whether all eligibility conditions in paragraph 4 of the ruling are met before relying on it. The full ruling is available at https://www.ato.gov.au/law/view/document?docid=CLR/CR202661/NAT/ATO/00001.
- Confirm Australian tax residency was maintained at all times from before the cancellation on 10 July 2026 through to 17 July 2026 - if not, this ruling does not apply.
- Check that no ESS deferred taxing point was triggered on Qoria performance rights before the cancellation - if one had already occurred, this ruling does not cover that situation.
- Speak to a tax adviser about how the continuation treatment affects the future ESS taxing point and what records to keep for when Aura performance rights eventually vest or are exercised.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.