Tax treatment on Employee share purchase plan

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(Enthusiast)Enthusiast

18 Apr 2024

Good afternoon

My company offers employee shares purchase plan that allows me to use after tax net pay income to purchase company shares at a discounted price.

For example, the share price now is USD$100/share and the discounted price for purchase is USD$90/share. I decide to buy 100 shares and AUD$13800 will be deducted from my net pay.

If then I sell the 100 shares@USD$100 and receive AUD$15800, would the AUD$2000 be added to my assessable income if I sell it within 30 days?
If I sell the 100 shares@USD$100 and receive AUD$15800 after 30 days, would $2000 be subject to CGT and eventually, this amount would need to be included in my taxable income in the financial year?

Many thanks

Chris

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