Employee share schemes - answers to frequently asked questions by employees

13. Do I need to make an election if my discount is less than $1,000 and the employee share scheme meets the exemption conditions?

No. For 2008-09, you are deemed to have made an election if your qualifying shares or rights are from an employee share scheme that meets the exemption conditions and the total discount related to the shares or rights is not more than $1,000. This means that you are not required to make an election in your tax return for these qualifying shares or rights nor are you required to include the discount in your assessable income. Refer to example 7.

If, however, you have acquired shares or rights that meet the exemption conditions and the discount is more than $1,000, you will still need to make an election as well as return the amount of the discount in excess of the $1,000 exemption in your tax return in the year you acquire the shares or rights.

For income years prior to 2008-09, you still need to make an election before lodging your tax return even if your total discount amount on all qualifying shares or rights acquired in the year is $1,000 or less, and the exemption conditions have been met.

Sections within Questions about making an election to be assessed on the discount upfront

• 10. How do I make an election to have qualifying shares or rights assessed in the year I acquire them?
• 11. Can I still have the discount assessed in the year I acquire qualifying shares or rights if I don't make an election?
• 12. What are the requirements for the first $1,000 of the discount to be exempt from tax?
• 13. Do I need to make an election if my discount is less than $1,000 and the employee share scheme meets the exemption conditions?
• 14. How do I calculate the discount on my shares or rights when I make an election?
• 15. If I do not make an election, when do I need to include the discount in my assessable income?