Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
meast(Initiate)Initiate
12 Nov 2021

Amendments were made to the employee share scheme rules in 2015 to introduce concessions for small start up companies. If certain conditions are met, the discount provided in relation to shares / options is not included in the assessable income of the employee. Section 115-30 has been amended to ensure that for the purpose of the CGT discount, when options are issued under the start up rules the ownership period is not reset when the options are exercised (item 9A of the table). However, a strict reading of the legislation suggests that this concession only applies if the options are held directly by the employee and that the CGT discount ownership period would be reset if the options are held by an associate of the employee (eg, spouse, family trust etc) and they are exercised. Is it correct that that this concession only applies if the options are held directly by the employee and that the CGT discount ownership period would be reset if the options are held by an associate of the employee (eg, spouse, family trust etc) and they are exercised? Thankyou

850 views
1 replies
850 views
1 replies

Most helpful response

Most helpful reply

RichATO(Community Support)Community Support
16 Nov 2021

Hello @meast


An amendment to ESS legislation in 2009 resulted in all ESS interest acquired after 01/07/2009 by an employee or their associate as being effectively owned by the individual employee for tax treatment purposes.

That hasn't changed.

So yes, you are correct, the benefit of the 2015 start-up tax concessions is only attributable to the individual employee.

All replies

Most helpful reply

RichATO(Community Support)Community Support
16 Nov 2021

Hello @meast


An amendment to ESS legislation in 2009 resulted in all ESS interest acquired after 01/07/2009 by an employee or their associate as being effectively owned by the individual employee for tax treatment purposes.

That hasn't changed.

So yes, you are correct, the benefit of the 2015 start-up tax concessions is only attributable to the individual employee.

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3108 likes

  2. Taxduck

    (Taxicorn)

    2109 likes

  3. PayrollDeanne

    (Taxicorn)

    844 likes

  4. YellowPotato

    (Taxicorn)

    549 likes

  5. knaresbro

    (Devotee)

    369 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    9647contributions

  2. Taxduck

    (Taxicorn)

    4818contributions

  3. PayrollDeanne

    (Taxicorn)

    2048contributions

  4. YellowPotato

    (Taxicorn)

    1383contributions

  5. YEP

    (Devotee)

    836contributions

Loading
ESS start up options held by associates | ATO Community