What CR 2026/77 Covers
ATO class ruling CR 2026/77 sets out the tax treatment for Juniper Networks Australia employees who held restricted stock units (RSUs) in Juniper Networks, Inc. at the time it was acquired by Hewlett Packard Enterprise Company (HPE) on 2 July 2025.
The ruling confirms that where Juniper RSUs were swapped for HPE RSUs as part of the merger, this is treated as a continuation of the original award rather than a new taxing event. This means the share swap itself does not trigger capital gains tax or an employee share scheme (ESS) deferred taxing point.
Scope of the Ruling
The ruling applies to the 2025-26 income year, covering the period from 1 July 2025 to 30 June 2026.
The summary notes this only matters to businesses or bookkeepers advising individual employees who held these specific share awards. It is described as not a general workplace or tax change affecting businesses generally.
Conditions That Apply
The ruling applies where the employee meets conditions including being an Australian tax resident, being employed by Juniper Networks Australia before the Effective Time, holding under 10% of Juniper or HPE shares, and continuing employment with HPE after the merger.
The ruling does not apply to anyone who has made a Division 230 (taxation of financial arrangements) election.
Key Actions
- If acting as a bookkeeper, accountant or tax agent with clients who were Juniper Networks Australia employees holding Juniper RSUs before 2 July 2025, check whether CR 2026/77 applies to their situation
- Confirm the employee meets all the ruling's conditions - Australian tax resident, employed by Juniper Networks Australia before the Effective Time, held under 10% of Juniper or HPE shares, and continued employment with HPE after the merger - before relying on the ruling
- Note the ruling applies to the 2025-26 income year (1 July 2025 to 30 June 2026) when preparing affected tax returns
- Exclude anyone who has made a Division 230 (taxation of financial arrangements) election, as the ruling does not apply to them
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.