ATO withdraws outdated guidance on employee share schemes

The ATO has withdrawn Taxation Determination TD 93/60 and Taxation Ruling IT 2516, stating that both are now obsolete and have no ongoing relevance.

TD 93/60 dealt with Australian employees receiving shares in foreign companies under now-repealed s 26AAC of the Income Tax Assessment Act 1936 (ITAA36), while IT 2516 explained amendments to the former employee share scheme rules in s 26AAAC, including how discounts and cost bases were to be treated.

These provisions have long been replaced by Division 83A of the ITAA97, which currently governs employee share schemes.  The withdrawals, effective 9 October 2025, are without replacement.

Tax agents should ensure that any references to these rulings are removed from practice materials and that advice on employee share schemes reflects the current Division 83A framework.