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ESS basics

Understand the basic terms we use and special tax treatments for employee share schemes (ESS).

Last updated 1 October 2025

If employee share schemes (ESS) interests are granted at a discount, special tax treatment may apply (as long as the eligibility conditions are met). It is important to know how ESS works so you understand the eligibility conditions that apply to you.

Changes to the tax treatment of ESS took effect on 1 July 2015.

For more information see:

Terms we use

Use these terms we use to help you understand employee share schemes (ESS).

Market value

To calculate the discount on employee share scheme (ESS) interests, you need to determine their market value.

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