The ATO has released the following updates regarding the Employee Share Scheme (ESS):
Electronic Reporting Specifications (ERS)
There are no changes to Employee share scheme reporting for the 2022 – 2023 financial year.
Versions of the ERS are as follows:
- 2018 – Current refer to ERS version 3.1.2
- 2016 – 2017 refer to ERS version 2.0.3
Employee share scheme (ESS) annual report specification v3.1.2 | ATO Software Developers
Employee share scheme (ESS) annual report specification v2.0.3 | ATO Software Developers
Employee Share Scheme Start-up Reporting
Please ensure the Reporting party Start-up indicator is answered correctly.
If answered Yes and the Provider is not a Startup, and the reported information is Deferred or Taxed Upfront scheme types, the employee records will not go to prefill.
Extension of Time Requests
Extension of time requests can only be submitted electronically via the Online services.
For foreign entities without Online services access, please email the request to ATO-ESS@ato.gov.au.
Email requests will only be processed for foreign entities.
ESS – Reporting requirements for employers | Australian Taxation Office (ato.gov.au)
Reporting for Overseas Entities
If you are an overseas Provider you need to engage an Intermediary (subsidiary, tax agent or share registry) to lodge your reports from the 2016 financial year and onwards.
Your intermediary will be required to lodge via Online services using the current electronic reporting specification, completing the ‘Reporting Party (Provider) ABN’ field with zeros.
For further information please see Overseas reporting parties.
From 1 July 2022
Cessation of employment that occurs on or after 1 July 2022 will no longer be a deferred taxing point.
This will not change how the remaining deferred taxing points will be reported.
Tax-deferred schemes | Australian Taxation Office (ato.gov.au)
Existing reporting methods, the ERS and the ESS Online form, will not change due to the removal of this taxing point.
Employee Share Scheme Companion Guide
This guide provides information to assist employers to complete and lodge the ESS annual report.
Employee Share Scheme (ESS) companion guide 1.2 | ATO Software Developers
The companion guide has been prepared for employers and intermediaries who lodge on employers’ behalf, and other interested parties. This guide contains instructions and examples of legislative requirements and commonly reported scenarios.
