This report covers the upcoming 14 July deadline for Australian Employee Share Scheme (ESS) reporting for the tax year ending 30 June 2019.
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The Employee Share Scheme (ESS) reporting for the Australian tax year ending 30 June 2019, is due on or before 14 July 2019. Employers have an annual obligation to report any Australian taxable events that occur in relation to ESS.1
This is an employer reporting obligation that companies must comply with. They should have appropriate systems and procedures in place to meet their ESS-related compliance obligations.
Penalties may be imposed on an employer if the submissions are not made on time. Any delays or errors in reporting also have a negative impact on employee engagement as the information forms a critical part of their own tax return obligations.
Identifying the Australian taxable event can be challenging:
Concerned employers should consult with their professional tax service providers regarding appropriate ESS reporting technology or assistance.
Any Australian taxable events during the year up to 30 June 2018, must be reported to:
Reporting to the ATO must meet specified electronic standard business reporting requirements, requiring a commercial software solution.
The obligation to report rests with the provider of the ESS.
If employees of Australian subsidiaries participate in a foreign parent ESS, the Australian subsidiary typically takes responsibility for the reporting obligations.
1 For related information, see Employer reporting requirements on the ATO website.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
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