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Types of ESS

There are many types of employee share schemes (ESS) and the type of scheme generally determines the tax treatment.

Last updated 20 December 2015

There are many types of employee share schemes (ESS). Generally, the type of scheme determines the tax treatment that applies.

The tax treatment can be either:

  • non-concessional – this means the employee or scheme does not meet the conditions for special tax treatment to apply
  • concessional – this means the employee and scheme meet the conditions for concessional tax treatment to apply.

An employee can be offered ESS interests under as many different types of schemes as the employer would like to offer them.

See also

Some employee share schemes (ESS) don't qualify for concessional tax treatment. These are known as non-concessional ESS.

Learn when employee share schemes allow concessional tax treatment for your employees.

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