• Transitional arrangements

    The reporting rules apply to ESS interests acquired since 1 July 2009.

    The law contains transitional provisions that apply to some ESS interests that were acquired before 1 July 2009. There were no employer reporting obligations before that date. However, you will need to know how the transitional provisions apply to affected shares and rights in order to fulfil your reporting obligations.

    When the reporting rules apply

    Refer to the following table to help you determine whether the reporting rules apply to ESS interests acquired before 1 July 2009.

    When to apply the reporting rules for acquisitions before 1 July 2009

    If …

    And …

    Then …

    they were qualifying shares or rights

    the employee has not elected to be taxed upfront under the previous rules,

    and

    a cessation time has not happened to the shares or rights before 1 July 2009

    the reporting rules apply.

    the employee elected to be taxed upfront under the previous rules

    the reporting rules do not apply.

    The law at the time will continue to apply.

    a cessation time had happened to the shares or rights before 1 July 2009

    they were non-qualifying shares or rights

     

    Reporting requirement for transitional arrangements

    The rules about employer reporting apply to all qualifying shares or rights acquired before 1 July 2009 where no cessation time had occurred before 1 July 2009, whether or not the employee has made an election to be taxed upfront.

    You must report the discount on ESS interests acquired before 1 July 2009 if a cessation time occurred during the financial year, whether or not the employee has made an election.

      Last modified: 12 Jul 2016QC 23058