Shire of Noosa and Sunshine Coast Region, Queensland
Tax Accountant in Peregian Beach
Shares from your employer, and franking credits worth more than your tax
Individual returns for Peregian Beach employees holding employee shares, and for founders and investors with franked dividends, from a CPA practice.
Peregian Beach is home to the Peregian Digital Hub at 253-255 David Low Way, a purpose-built facility for technology companies. In the 2021 Census, 27.6% of the suburb's employed residents were Professionals and 17.0% Managers, and median weekly household income was $1,896. A technology employer may pay part of a staff member's reward in shares or options, which are taxed under separate rules.
Peregian Beach in brief
From a 1960 township to a hub for tech companies.
A township began to develop in 1960, and the locality was officially named on 1 April 1966. The suburb had 4,972 residents in 2021, with a median age of 42, and is split between the Shire of Noosa on the coast and the Sunshine Coast Region inland.
Three questions for employees, founders and investors
Employee shares: taxed now or later
Why it happens
An employer grants shares or options at a discount as part of a pay package.
Why it matters
Under a taxed-upfront scheme, the discount is taxed in the year you acquire the shares; if your taxable income, after adjustments, is $180,000 or less, you may reduce it by up to $1,000. Under a deferral scheme, tax waits until the deferred taxing point, generally the earliest of several events, and at the latest 15 years after acquisition. Leaving the employer isn't itself a taxing point.
How we help
The result is a return that is compliant and considered, with practical guidance you can carry into the next financial year. Ask your employer which type of scheme your shares were issued under.
The start-up concession
Why it happens
The employer is an early-stage company offering equity to its first staff.
Why it matters
Under the start-up concession, eligible discounts on shares or options in start-up companies aren't taxed under the employee share scheme rules at all. Any later gain is taxed under the capital gains tax rules when the shares are sold.
How we help
Ask the company whether it intends the start-up concession to apply, and keep the offer documents.
Founders paid in franked dividends
Why it happens
A founder or investor receives dividends with franking credits attached, from a private company they own or from listed shares.
Why it matters
If your franking credits are more than the tax you owe, the excess can be refunded, provided the anti-avoidance rules are met. In the ATO's example, a shareholder with $200 of tax and a $300 franking offset is refunded $100. Reinvested dividends still count, and people who don't need to lodge a return can apply for the refund separately.
How we help
Bring every dividend statement for the year, including those for reinvested dividends.
Frequently asked questions
How are employee shares taxed for a Peregian Beach tech worker?
It depends on the scheme: a taxed-upfront scheme taxes the discount in the year you get the shares, a deferral scheme taxes it at a later taxing point, and the start-up concession can take it out of the employee share rules altogether.
Can I get a refund of franking credits?
Yes, if your franking credits are more than your tax payable and you meet the anti-avoidance rules.
Is leaving my job a taxing point for deferred shares?
No. Ceasing employment isn't a deferred taxing point on its own.
Where to next
Have a question?
Before the vesting date
Filing your tax return should feel straightforward and accurate.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm