Employee share scheme options and acquisition of shares by self-managed super funds

Employee share scheme (ESS)

An ESS is a scheme under which shares, stapled securities and rights (including options) to acquire shares and stapled securities in a company are provided to its employees (including current, past or prospective employees and their associates) in relation to their employment. Usually shares or rights acquired under an ESS are acquired at less than market value.

Your SMSF is an associate of each member of your fund, and there are specific tax rules for shares or rights acquired by an associate.

For general information on ESS, refer to Employee share schemes - home.