House of Representatives
Tax and Superannuation Laws Amendment (Employee Share Schemes) Bill 2015
Explanatory Memorandum
(Circulated by the authority of the Minister for Small Business, the Hon Bruce Billson MP)The discount is generally taken to be the difference between the market value of the share or right and any amount paid by the employee to acquire the share or right.
The Australian Taxation Office provides guidance on the real risk of forfeiture test: http://ato.gov.au/General/Employee-share-schemes/In-detail/Restrictions-and-forfeiture/Real-risk-of-forfeiture.
That is, the financial risk associated with losses - or, the risk of a difference between the actual return and the expected return, where the actual return is less.
Advancing Australia as a Digital Economy : An Update to the National Digital Economy Strategy , 12 June 2013.
Securing Australia's Manufacturing Future , 18 December 2013.
It is worth noting that not all stakeholders were equally informed regarding current domestic or international arrangements relevant to the taxation of ESSs.
Taxation Statistics 2011-12.
The changes in 2009-10 introduced increased reporting requirements to improve the integrity of the tax system. As a result, employers are currently required to report shares and rights acquired under an ESS both at issue and at an employee's taxing point.
See Treasury website: http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2014/Employee-Share-Schemes-and-Startups.