Overview
The Australian Taxation Office has issued Class Ruling CR 2026/61. The ruling covers employees of Qoria Limited - an ASX-listed technology company - and its subsidiaries who had performance rights cancelled on 10 July 2026 and replaced with performance rights in Aura Consolidated Group, Inc. on 17 July 2026, as part of a corporate restructure.
What the ruling confirms
The ruling confirms that the swap of performance rights does not trigger a tax event. The Aura performance rights are treated as a direct continuation of the original Qoria performance rights. Employment with Aura counts as continuous employment for tax purposes. No additional income tax, penalties, or interest applies to employees covered by this ruling in relation to this specific transaction.
Period covered
The ruling applies for the period 1 July 2026 to 30 June 2027.
Conditions that must be met
The ruling applies only to employees who meet all conditions set out in paragraph 4 of the ruling. The following conditions are stated in the ruling:
- The employee held Qoria performance rights under the Qoria Limited Employee Incentive Securities Plan, which was approved on 21 November 2025.
- The employee's Qoria performance rights were cancelled on 10 July 2026 and replaced with Aura performance rights on 17 July 2026.
- The employee was a resident of Australia at all times from before the Cancellation Time - stated in the ruling as 10 July 2026, 4:59pm AWST - through to the Implementation Date of 17 July 2026.
- The employee did not have a Division 230 (taxation of financial arrangements) election in place. The ruling does not cover anyone subject to those rules.
Scheme description
The ruling describes the scheme in paragraphs 12 to 24. Employees are required to confirm their specific circumstances match the scheme as described in those paragraphs.
Record keeping
The ruling states that records of Qoria performance rights under the Qoria Limited Employee Incentive Securities Plan and replacement Aura performance rights under the Aura Plan will be needed when a taxing point eventually arises.
Key actions
- Check whether all conditions in paragraph 4 of the ruling are met to confirm the ruling applies.
- Confirm Australian residency was maintained at all times from before the Cancellation Time (10 July 2026, 4:59pm AWST) through to the Implementation Date (17 July 2026).
- Check that no Division 230 election was in place at the relevant time.
- Read the full ruling at https://www.ato.gov.au/law/view/document?docid=CLR/CR202661/NAT/ATO/00001 to confirm specific circumstances match the scheme described in paragraphs 12 to 24.
- Keep records of Qoria performance rights under the Qoria Limited Employee Incentive Securities Plan (approved 21 November 2025) and replacement Aura performance rights under the Aura Plan.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.