• Employer reporting obligations

    From 1 July 2009, as an employer, you are subject to reporting obligations if, under an employee share scheme, you provide ESS interests to your employees or to their associates. These reporting obligations also apply to indeterminate rights.

    See also:

    Timing for reporting of indeterminate rights

    Transitioned interests

    If your employee acquires rights before 1 July 2009, which after 30 June 2009 become rights to acquire shares that are qualifying, and a possible cessation time happens to those rights after 30 June 2009 (whether or not the employee made an election), you are required to provide an ESS statement to your employees. You also need to provide an ESS annual report to the Commissioner for the income year in which the possible cessation time occurs.

    There is no reporting requirement if the rights are not qualifying, or if the cessation time for the rights occurred before 1 July 2009.

    See also:

    Taxed-upfront scheme

    If, after 30 June 2009, your employee acquires indeterminate rights which later become rights to acquire shares under a taxed-upfront scheme, you must:

    • if the indeterminate rights become rights to shares in the same income year in which the employee acquired the indeterminate rights, give the information to the employee in an ESS statement by 14 July and to the Commissioner in the ESS annual report by 14 August after the end of the income year, and
    • if the indeterminate rights become rights to shares after the end of the income year in which the employee acquired the indeterminate rights, give the employee an amended ESS statement and give the Commissioner an amended ESS annual report for the acquisition year within 30 days of the indeterminate rights becoming rights to shares.

    Tax-deferred scheme

    If, after 30 June 2009, your employee acquires indeterminate rights which later become rights to shares under a tax-deferred scheme, you must:

    • if the deferred taxing point occurs in a financial year before the indeterminate rights become rights to shares
      • give the employee an amended ESS statement for the year in which the deferred taxing point occurred, within 30 days of the indeterminate rights becoming rights to shares, and
      • give us an amended ESS annual report for the year in which the deferred taxing point occurred, within 30 days of the indeterminate rights becoming rights to shares.
       
    • if the deferred taxing point occurs during the income year in which the indeterminate rights become rights to shares
      • give the employee information on the rights in their ESS statement by 14 July
      • give us information on the rights in the ESS annual report before 14 August
       
    • if the deferred taxing point occurs after the income year in which the indeterminate rights become rights to shares
      • give the employee information on the rights in their ESS statement for the year in which the deferred taxing point occurs, and
      • give us information on the rights in the ESS annual report for the year in which the deferred taxing point occurs.
       
      Last modified: 17 Aug 2016QC 25098