Supplementary Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
Employee share schemes
This measure will amend Taxation Laws Amendment Bill (No.1) 1997 so that taxpayers can calculate the market value of shares or rights acquired under an employee share scheme using either the existing method set out in section 139FA of the Income Tax Assessment Act 1936, or the method set out in section 139FA as amended by this Bill.
Date of effect: The amendment will apply to shares or rights acquired under an employee share scheme on or after 28 March 1995 and before 12 December 1996 (date of introduction of the Bill).
Amendment announced: Not previously announced.
Financial impact: There may be negligible cost to the revenue.
Compliance cost impact The amendment ensures that taxpayers who have lodged income tax returns based on the existing calculation method will not have to amend those returns as a result of amendments to the calculation method contained in the Bill.