What this ruling covers
The Australian Taxation Office (ATO) has issued Class Ruling CR 2026/47. The ruling applies to employees of the Central Waste Group (CWG) who received share options under the Central Waste Group Employee Option Plan (EOP).
The options were issued on or around 18 September 2021 and were cancelled on 27 May 2024 as part of a sale of CWG to new owners.
The tax concession
Section 83A-33 of the Income Tax Assessment Act 1997 provides a reduction in the amount included in assessable income when certain share options are acquired. The ruling confirms this concession still applies to the CWG options even though they were cancelled before the normal minimum holding period ended.
The ATO is treating 27 May 2024 - the cancellation date - as the end of the minimum holding period under paragraph 83A-45(5)(a).
Period covered
The ruling applies for the period 1 July 2021 to 30 June 2024.
Eligibility conditions
The ruling only applies to individuals who meet all four conditions set out in paragraph 4 of the ruling:
- The individual was a Participating Employee under the EOP.
- The individual was a CWG employee from the date they acquired the options until the date of cancellation on 27 May 2024.
- The individual was entitled to the section 83A-33 reduction at the time they acquired the options.
- The individual was an Australian resident on 27 May 2024.
Important limitation
The ruling does not apply to individuals who are subject to the Division 230 taxation of financial arrangements rules.
Key actions
- Confirm with a tax agent that the section 83A-33 reduction is correctly claimed in the 2023-24 tax return, where options were cancelled on 27 May 2024.
- Check that all four eligibility conditions in paragraph 4 of the ruling are met before applying the concession.
- Confirm with a tax adviser whether the Division 230 rules apply, if there is any uncertainty.
- Read the full ruling at ATO Legal Database - CR 2026/47 and provide a copy to a tax agent.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.