This session provides a practical and technical overview of the Australian tax treatment of employee share schemes (ESS) and employee share scheme interests (ESS interests).

Participants will gain an understanding of the income tax, capital gains tax (CGT), and fringe benefits tax (FBT) implications for both employers and employees.

Special focus is given to the concessional ESS regime for eligible start-up companies, as introduced by Division 83A of the Income Tax Assessment Act 1997 (ITAA 1997).

The session aims to equip practitioners with the tools to advise clients, design compliant ESS arrangements, and navigate ATO reporting and compliance requirements.

Objectives:

• Identify and apply the tax rules under Division 83A ITAA 1997 governing ESS interests.

• Distinguish between taxed-upfront and deferred-taxing schemes.

• Understand CGT implications on disposal of ESS interests.

• Recognise FBT exemptions and interactions with ESS benefits.

• Apply the special start-up concessions under Subdivision 83A-B for qualifying companies.

• key ATO rulings and administrative guidance relevant to ESS