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Dealing with employee share schemes

Recorded 24 July 2025. Applying the tax rules for employees and managing employer obligations 

Step-by-step guide to the tax treatment for employees
Taking advantage of concessions built into the rules
Practical tips to prevent common problems 

Recorded 24 July 2025

Changes to the employee share scheme rules over the years have meant that even smaller businesses can incentivise employees by giving them a share in the business – a helpful strategy in attracting, retaining and motivating staff. This is particularly useful for start-ups which are often cash poor and can’t offer big salaries.

The Dealing with Employee Share Schemes Webinar looks at when the ESS rules are triggered and how to determine the tax outcome for employees. We work through the concessions that sometimes allow the taxable amount to be reduced, deferred or disregarded completely and what needs to be done to qualify for these concessions.

We also look at the obligations imposed on employers who provide shares or options to employees.

Total 1.25 CPD Hours

What we cover

For tax purposes, there are specific provisions in Division 83A of ITAA 1997 that deal with shares and options provided to employees that ensure employees who receive these interests at a discount to market value, are taxed appropriately. The rules contain a number of concessions that can apply if certain conditions are met, including rules which reduce the taxable amount or defer the taxing point.

The Dealing with Employee Share Schemes Webinar demonstrates the tax impact on employees, the concessions, and problem areas.

Identifying when shares or options are caught by the ESS rules
Determining whether the ESS rules apply to contractor arrangements
How to structure ESS arrangements so that the taxing point can be deferred
The conditions that need to be met to access the concessions aimed at small start-up companies
The interaction between the ESS rules and the CGT provisions
The most common problem areas when applying the ESS rules
The latest changes to the rules and the practical impact on employees
What employers need to do to ensure they comply with reporting obligations

Rae Ni Corraidh

Tax Adviser, Knowledge Shop

Rae is an experienced tax advisor and trainer focused on helping practitioners apply complex tax rules to real life scenarios. She has a genuine passion for helping practitioners find a solution to the tax problems that their clients face (and sometimes unwittingly cause).

She understands the challenges faced by practitioners and brings a wealth of practical experience to Knowledge Shop workshops and webinars to ensure participants walk away with the knowledge and tools they need to help their clients navigate the technical issues they are facing.

Rae holds a Masters in Commerce specialising in tax and has over 20 years tax experience in professional services firms, ten in Big 4 firms both in Australia and internationally and has held management positions in mid-tier firms.