• Deferred taxing point

    The deferred taxing point for a share or stapled security is the earliest of the following times:

    • when the employee ceases the employment in respect of which they acquired the share
    • when there is no real risk of forfeiture and the scheme no longer genuinely restricts the disposal of the share
    • for shares or stapled securities acquired between 1 July 2009 and 30 June 2015, 7 years after the employee acquired them
    • for shares or stapled securities acquired from 1 July 2015, 15 years after the employee acquired them.

    The deferred taxing point for a right is the earliest of the following times:

    • when the employee ceases the employment in respect of which they acquired the right
    • when there is no real risk of forfeiting the right and the scheme no longer genuinely restricts disposal of the right
    • for rights acquired between 1 July 2009 and 30 June 2015
      • when there is no real risk of forfeiting the right or underlying share, and the scheme no longer genuinely restricts exercise of the right or disposal of the resulting share,
      • 7 years after the employee acquired the right
    • for rights acquired from 1 July 2015
      • when the employee exercises the right, there is no real risk of forfeiting the underlying share and the scheme no longer genuinely restricts the disposal of the resulting share
      • 15 years after the employee acquired the right.

    If the employee disposes of the ESS interest (or the share acquired on exercise of the right) within 30 days of the deferred taxing point, the deferred taxing point will instead be the date of that disposal (this is called the 30-day rule).

      Last modified: 01 Jul 2015QC 27241