What This Ruling Covers
CR 2026/80 is a Class Ruling issued by the ATO specifically for employees of FCD Water Pty Ltd who held options over shares in the company under its Share Option Plan.
The ruling confirms that employees who acquired options between July 2022 and May 2025, and disposed of them when the company was sold in the 2027 income tax year, can have their minimum holding period end early on 8 July 2026, rather than waiting the usual 3 years.
This means those employees are not disadvantaged tax-wise by the early sale of the company.
Who This Applies To
This ruling only applies to people who meet specific conditions set out in the document. It has no relevance to other businesses or employee share schemes.
Key Actions
- Former FCD Water employees who held Options under the Share Option Plan and disposed of them when the company was sold should check whether they meet all the conditions in paragraph 4 of CR 2026/80.
- Confirmation is required that the employee was employed by FCD Water continuously from when the Options were acquired until they were disposed of, and that the employee was an Australian tax resident at the time of disposal.
- If eligible, the ruling can be applied when preparing the income tax return for the year ending 30 June 2027, using 8 July 2026 as the earlier minimum holding period end date.
- Advice from a tax agent or accountant is available for those unsure whether this ruling applies to their specific circumstances.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.