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Employee Share Scheme

Newbie

Views 103

Replies 1

Hi,

In FY19/20 I  received an entitlement to shares through my Employee Share Scheme of approx $70k at a zero cost base.  Understandably the $70k was included under a "Discount from deferral schemes" and included as part of my FY19/20 total annual income which attracts a standard rate of personal tax.   

Again in FY19/20 (due to covid) the share price of these shares dropped dramatically and I subsequently sold all of them for $40k (ie at a $30k loss).    According to my accoutant I am unable to offset the $30k loss incurred against the $70k acqusition cost of the shares.   And in fact I still need to pay income tax on the orignal $70k and cannot offset the $30k loss against it.  Is this correct?  It seems unfair to be fully taxed on an unreaslised gain of 70k which ultimatley resulted in only a $40k gain (again both acquisition and sale were transacted in the same year).     

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 0

Hi @GeorgeP23 

 

To be able to give you any information we would need to know what sort of scheme it was and what the rules around it were. I would assume that your tax agent has reviewed the rules and has provided advice taking them into consideration.

 

You may need to contact our Early Engagement team to get specific advice to your situation.

1 REPLY 1

Most helpful response

Community Moderator

Replies 0

Hi @GeorgeP23 

 

To be able to give you any information we would need to know what sort of scheme it was and what the rules around it were. I would assume that your tax agent has reviewed the rules and has provided advice taking them into consideration.

 

You may need to contact our Early Engagement team to get specific advice to your situation.