16 March, 2016
The Australian Taxation Office (ATO) has recently announced a number of changes to the ESS reporting requirements commencing from the year ending 30 June 2016, including changes in:
- the manner in which ESS Annual Reports can be lodged;
- the information to be included in the ESS Annual Report and the ESS Statement, including specific information relevant to:
- internationally mobile employees; and the new start-up concession.
New ESS reporting process
The ATO has announced that it will no longer accept paper or Bulk Load Excel Spreadsheet lodgements. Instead, the following two alternatives will be available for lodging ESS Annual Reports:
- a new ESS Online Form that can be used for up to 50 (the ATO has now increased this number from 20 to 50) employees (but we understand it will not be released by the ATO until July); and
- online filing using software developed in accordance with the ATO's Electronic Reporting Specifications.
If we have assisted you with your ESS Reporting in the past, we will be in touch with you shortly to discuss the best approach.
Additional information
Internationally mobile employees
In the past, the ATO has accepted that companies can report either the gross or the apportioned (i.e. the Australian sourced portion) amount of the discount for internationally mobile employees. From the year ending 30 June 2016 onwards, the provider must indicate on the ESS Annual Report whether the amount reported is a gross or apportioned amount.
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The company can also choose to provide the start date and/or end date of overseas employment (for outbound employees only).
Start-up concession information
The ESS Annual Report and ESS Statements will require the following details in relation to shares or options that are eligible for the start-up concession in respect of the year in which the ESS interest is acquired (the same information will not be required again in subsequent years):
- acquisition date;
- number of shares/options acquired;
- market value of shares acquired or for options, market value of underlying shares;
- acquisition price of shares acquired; and
- exercise price for options.
Other changes
Companies must also now provide the acquisition date of shares or rights/options in the ESS Annual Report.
For further information, please contact:
John Walker, Partner, Baker & McKenzie
john.walker@bakermckenzie.com
