Shares, rights and options acquired after 7.30pm (AEST) on 12 May 2009

In the 2009 Federal Budget the government announced changes to the income tax concessions previously available to participants in employee share schemes. The changes will apply to shares and rights acquired under an employee share scheme after 7.30pm (AEST) on 12 May 2009.

The measure will remove the ability of taxpayers to elect to either have the discount on qualifying shares and rights acquired under an employee share scheme taxed upfront or in the future. This will mean that discounts provided on all shares or rights acquired under an employee share scheme will be assessed in the income year the shares or rights are acquired. The measure will also limit access to the existing tax exemption of up to $1,000 of the total discounts received to employees with an adjusted taxable income of less than $60,000.

At the time this guide was finalised, legislation had not been enacted to give effect to the new measure. Go to our website at ato.gov.au for instructions on how to complete your tax return and information about the progress of the Bill.