Hi,
I have a question on ESS Tax-deferred scheme via salary sacrifice.
I participated in my company's ESS tax-deferred scheme by monthly salary sacrifice. The tax deferred date is 1 year later.
For the example below, I'll use just a month for simplicity.
- I bought 10 shares on 1 May 2023 by salary sacrificing $300 (10 shares @ $30 per share)
- On 1 May 2024 (the tax deferred point a year later), the market price has increased above $10 but my share portal does not tell me the exact price at the tax deferred point.
- At this point, I have 10 shares, acquired at @ $30 per share with $300 salary sacrifice. I continue to hold the shares until today.
Reading Section F of the Employee share scheme statement for the year ending June 30 2024, I'm seeing
- Transaction Date = 1 May 2024
- Original Issue Date = 1 May 2023
- Transaction Type = Release from Restriction
- Number of ESS interest = 10
- Employee's Costs = $0 Why is this 0?
- Market Value (Cost Base) = $350
- Total Discount = $350
My questions are
- I'm assuming that the Market Value (Cost base) of $350 is the number of shares multiplied by the market value at the tax deferred point of 1 May 2024, which works out to $35 (taken as $350 / 10 shares). Is this correct ?
- Why is the Employee Costs stated at $0. Shouldn't this be $300 which was the amount salary sacrificed a year prior ?
- I had filled in the entire amount of $350 into my tax return for FY2024. I'm starting to think I've overstated the amount. Should I have filled in $50 ($350 - $300 = $50) instead?
From Tax-deferred schemes | ATO, it is mentioned that "The amount assessed will be the market value of the ESS interests at the deferred taxing point, reduced by the cost base."
I'm worried I have overpaid tax because the section F has my cost base stated as 0 instead of my actual cost base as the above was an example for just 1 month out of 12.
Appreciate your help on my questions above.
Thank you very much !
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