Guide to investment

Employee share schemes

Some companies encourage employees to participate in employee share schemes by offering them discounted shares or rights (including options) to acquire shares. The amount of the discount is treated as assessable income for tax purposes.

You acquire shares or rights under an employee share scheme if the acquisition is in relation to your employment or any services you provide.

The discount you receive is worked out as the market value of the shares or rights less any money or other consideration you provided to acquire them. It is calculated at the date you acquired the shares or rights.

The key tax issues you need to be aware of at this stage are:

• You generally include the amount of the discount in your assessable income for the income year you acquire the shares or rights (although in some circumstances you can defer this until a later income year).
• Capital gains tax may apply when you dispose of the shares or rights.

	For more information about employee share schemes, refer to: Employee share schemes - home Tax return instructions 12 - Employee share schemes Employee share scheme rollover relief.
	Investment - home

Sections within Shares

• Obtaining shares
• Owning shares
• Disposing of shares
• Employee share schemes