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The conditions of the scheme in and your personal circumstances determine when you pay tax on the discount you receive.

Last updated 27 June 2018

If any of the following apply to you:

  • you received a discount on ESS interests acquired under a 'taxed-upfront scheme'
  • a 'deferred taxing point' occurred in respect of your ESS interests under a 'deferral scheme'
  • a 'cessation time' occurred in relation to a qualifying shares, stapled securities or rights you acquired before 1 July 2009 under an employee share scheme, and you had not elected to be taxed upfront on the discount.

the conditions of the scheme in which you participate and your personal circumstances determine when you pay tax on the discount you receive.

You may be entitled to reduce the amount of the discounts received under taxed-upfront schemes by up to $1,000 if the following amounts on your tax return add up to $180,000 or less:

  • your Taxable income for the year (calculated as though you are not entitled to the $1,000 reduction)
  • your Total reportable fringe benefits amounts
  • your Reportable employer superannuation contributions
  • your Net financial investment loss
  • your Net rental property loss
  • your Deductible personal superannuation contributions.

See also Employees.

The rules of the scheme or a letter from your employer should advise you whether you have acquired ESS interests under a taxed-upfront or deferral scheme. Your employer must provide you with an Employee share scheme statement which shows you the value of any discounts you have received on your ESS interests in 2017–18. You will need this statement to complete this section.

Discounts on eligible ESS interests provided to you by a start-up company will not be included on your Employee share scheme statement and should not be included at this section.

QC55407