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Hi @Milk,
Thanks for getting in touch!
Generally speaking, you acquire employee share scheme (ESS) shares for capital gains purposes on the day they are taxable under the ESS rules- at their market value on that day. This day is called the ‘taxing point’. This is also the day the 12 month rule starts for the 50% CGT discount.
Check with your employer if you are not sure of the exact day they were taxable under the employee share scheme rules or the market value on that day. In many cases, including salary sacrificed shares, the taxing point will be deferred from the date of granting/issue.
You can find more information about the treatment of ESS and CGT on our website.
Thanks.
Not sure I have all the information to provide a suitable answer for you.
This will help you:
Thanks very much Mcfanboy!
Between the information from the link you sent and some other information from another ATO community post, I think believe I've confirmed that
EOFY Shares: Are at the market valued at date of issue, not when they vest.
STI Shares: Are at the market valued at date of issue, not when they vest or the discounted issue.
I'm still unsure on whether the year towards receiving the 50% discount on CGT commences on issue or when the vest. I'm guessing it is when they vest, but I'm hoping it is when they are issued. Hopefully someone else can help?
Hi @Milk,
Thanks for getting in touch!
Generally speaking, you acquire employee share scheme (ESS) shares for capital gains purposes on the day they are taxable under the ESS rules- at their market value on that day. This day is called the ‘taxing point’. This is also the day the 12 month rule starts for the 50% CGT discount.
Check with your employer if you are not sure of the exact day they were taxable under the employee share scheme rules or the market value on that day. In many cases, including salary sacrificed shares, the taxing point will be deferred from the date of granting/issue.
You can find more information about the treatment of ESS and CGT on our website.
Thanks.
Hi @JodieH,
Thanks very much for your response.
After some digging around on my company intranet and ESS portal for the 'taxing point' I found the information I needed. It was in fact the same day the shares vest, but I wouldn’t have know that for sure without your help.
Thanks!
Milk
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