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  • Employee share trust TD 2019/D8 open for public consultation

    If you're looking at establishing or have established an employee share trust for an employee share scheme, we encourage you to read our draft Taxation Determination TD 2019/D8. It outlines the Commissioner’s view on what an ‘employee share trust’ is, and provides practical examples of activities that will and will not meet the requirements of an employee share trust.

    Employee share schemes give employees benefits such as:

    • shares in the company they work for at a discounted price
    • the opportunity (right or option) to buy shares in the company in the future.

    TD 2019/D8 clarifies that for a trust to be an employee share trust, its sole activities must be:

    • obtaining share or rights in a company
    • ensuring that the beneficial interests in those shares or rights are provided to participating employees or their associates; and
    • other activities that are merely incidental to the above activities.

    If these requirements aren't met, the trust, its beneficiaries or the employer company may not be able to access capital gains tax and fringe benefits tax concessions.

    Read more about TD 2019/D8 Income tax: what is an 'employee share trust' and provide your feedback by 18 October 2019.

    See also:

    Last modified: 18 Sep 2019QC 60135