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  • Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Condition 1

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    ESS interests acquired before 1 July 2009 where the $1,000 exemption applies

    You are not required to report potential deferred taxing points that could arise for ESS interests, where all the following apply:

    • Your employee acquired them before 1 July 2009 under a scheme where the $1,000 exemption applied.
    • The discount at acquisition was less than or equal to $1,000.
    • You believe the employee was eligible for the $1,000 exemption.

    You are still required to give your employee an ESS statement - this may be a reduced ESS statement using the following authorised wording.

    Authorised wording for reduced ESS statements

    Give your employee a document with the following authorised wording:

    During 2012-13, you had a potential deferred taxing point for shares or rights that you acquired under an employee share scheme before 1 July 2009.
    The Australian Taxation Office advises us that you do not need to report this information on your 2013 tax return.
    For more information on the taxation treatment of employee share schemes, see Employee share schemes.

    Example

    Metropolis Ltd gives their employee, Quinn, 500 shares on 11 January 2009 under a scheme where the $1,000 exemption applies. The discount at acquisition is $700. Quinn is eligible for the $1,000 exemption.
    On 10 January 2013, there is a potential deferred taxing point for these shares. As the discount at acquisition was less than $1,000, and Quinn was eligible for the $1,000 exemption, Metropolis Ltd is not required to report any information to the ATO.
    Metropolis Ltd gives Quinn a reduced ESS statement before 14 July 2013, as follows:
    During 2012-13 you had a potential deferred taxing point for shares or rights that you acquired under an employee share scheme before 1 July 2009.
    The Australian Taxation Office advises us that you do not need to report this information on your 2013 tax return.

    For more information on the taxation treatment of employee share schemes, see Employee share schemes.

      Last modified: 25 Jun 2013QC 35310