The cessation of employment taxing date for employee share scheme (ESS) interests is to be removed. The changes were made in the Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 (Cth) (Bill) which was introduced into parliament today.
> Link to bill: https://parlinfo.aph.gov.au/parlInfo/download/legislation/bills/r6817_first-reps/toc_pdf/21165b01.pdf;fileType=application%2Fpdf
Assuming that the Bill receives Royal Assent prior to 1 July 2022, the new rules will apply to any ESS security if the taxing point occurs after 1 July 2022. It is not dependent upon the date that the ESS interest is issued, which was previously the case.
The Bill does not include the proposed changes to the corporate rules regulating the offering of ESS interests. These were the subject of a detailed consultation earlier this year (see EOA Submission).
Next steps
Examine the terms of any ESS offers to accommodate the new cessation of employment rules.
