Upcoming ATO reporting obligations

The ATO requires employers that issue shares or share options to employees to complete their reporting obligations. The deadlines to comply with the reporting requirements are:

• ESS statements are due to be issued to employees by 14 July 2026
• ATO reports are due for lodgement with the ATO by 14 August 2026

What do the ATO reporting obligations mean for you?

Our innovative solution | CTS ESS Toolkit

Our CTS ESS Toolkit, an ATO-approved and compliant software solution, enables employers to simplify their online annual employee share scheme reporting obligations.

We are one of only a handful of providers to have passed ATO testing and have ATO approval for our specialised software. Using the CTS ESS Toolkit, SW has been successfully working with businesses to meet their ESS lodgement requirements.

The table below outlines the types of companies that are most likely to benefit from using the CTS ESS Toolkit.

Significant global entities (SGE)

SGEs are entities that have an annual global turnover of A$1bn or more. SGEs are subject to increased Failure to Lodge (FTL) penalties for late lodgement of every ATO document or approved form. The SGE penalties are currently $165,000 for each 28 days in which an approved form is lodged after the due date, up to a maximum of $825,000. The lodgement of ESS reporting falls within this definition.

The public officer of the company is responsible for the company’s obligations under the income tax law, including the timely lodgement of approved forms with the ATO. If your company is part of an SGE, we recommend implementing systems to ensure timely lodgement of ESS reports with the ATO.

How SW can help

There is limited time to meet ESS reporting requirements, and the ATO is placing particular emphasis on ensuring corporates comply with timely and accurate reporting obligations.

Now is the time to ensure your business is prepared for the reporting season. We offer a fully outsourced ESS reporting service or a software licensing option.

Please contact Sam Morris or Justin Batticciotto to learn how to comply with the ATO reporting requirements and to discover how our CTS ESS Toolkit can assist.

2026 Federal Budget announcement

Whilst the 2026 Federal Budget does not directly impact the ESS rules, the proposed capital gains tax (CGT) reforms, which would replace the 50% CGT discount with inflation indexation and introduce a minimum 30% tax rate from 1 July 2027, will change the benefit of some ESS plans for employees. As a result, ESS structures, particularly for start-ups, may become less tax advantaged and may require redesign if the proposed changes proceed without any adjustments for start-ups.

Additional services

ESS plan and review

We can conduct a comprehensive review of your ESS framework and plan(s) to support your business in understanding and addressing key areas. As part of this review, we can:

• assess your existing share scheme structure
• confirm whether awards are taxed at grant or deferred
• identify payroll tax implications and risks
• provide clear guidance on ATO and state reporting obligations
• review prior year ESS reporting for errors or gaps
• prepare and lodge amendments and voluntary disclosures
• liaise with the ATO and state revenue offices
• help minimise penalties, interest, and audit risk
• advise on new plan design or changes to existing schemes
• assist with annual reporting and documentation.

Contacts

Sam Morris
E: smorris@sw-au-com

Justin Batticciotto
E: jbatticciotto@sw-au.com

The post Simplify employee share scheme reporting with the CTS ESS Toolkit appeared first on SW Accountants & Advisors.

Upcoming ATO reporting obligations

The Australian Taxation Office (ATO) have reporting obligations in place, affecting employers who issue shares or share options to their employees.  The deadlines to comply with the reporting requirements are:

• ESS statements are due to be issued to employees by 14 July 2024.
• ATO reports are due for lodgement with ATO by 14 August 2024. 

What do the ATO reporting obligations mean for you?

Our innovation solution | CTS ESS Toolkit

Our ‘Complete Tax Solutions Employee Share Scheme’ Toolkit (CTS ESS Toolkit), an ATO-approved and compliant software enables employers to simplify their online annual employee share scheme reporting obligations.

Using the CTS ESS Toolkit, SW have been successfully working with businesses to meet their ESS lodgement requirements since electronic reporting began. We are one of only a handful of providers to have passed ATO testing and have ATO approval for our specialised software. CTS ESS Toolkit is designed to help you meet the ATO’s ESS reporting requirements.

The table below outlines the types of companies that are most likely to benefit from using the CTS ESS Toolkit.

Significant Global Entities

Significant Global Entities (SGE) are entities which are part of a group with annual global turnover of A$1 billion or more. SGEs are subject to increased Failure to Lodge (FTL) penalties for late lodgement of each and every ATO document or approved form. The SGE penalties are currently $156,500 for each 28 days in which an approved form is lodged after the due date up to a maximum of $782,500. The penalties apply to each and every late lodgement of an approved form. We consider the lodgement of ESS reporting would fall within this definition.

The public officer of the company is responsible for the company’s obligations under the income tax law, including the timely lodgement of approved forms with the ATO. If your company is part of an SGE, we recommend that you implement systems to ensure timely lodgements of the relevant ESS reports with the ATO.

Next steps

Time is limited to make the necessary arrangements to comply with the ESS reporting requirements.  The ATO is particularly keen to ensure corporates are compliant and provide timely and accurate reporting.

Now is the time to ensure your business is not left behind and that everything is ready for reporting season.  We can provide a fully outsourced service or license our software.

To discuss how to comply with the ATO reporting requirements or learn more about how our ESS Toolkit will help you, please contact Sam Morris or Justin Batticciotto on the details below.

Contributors

Sam Morris

E: smorris@sw-au-com

Justin Batticciotto

E: jbatticciotto@sw-au.com

The post 2024 Employee Share Scheme (ESS) Reporting appeared first on SW Accountants & Advisors.