Specification / Software developers / October2012 / UNCLASSIFIED
format / Audience / Date / Classification
Electronic reporting specification
Employee share scheme (ESS) annual report version 1.0.1
UNCLASSIFIED / For further information or questions, call 13 28 66
UNCLASSIFIED / PAGE1 OF 58
UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - EMPLOYEE SHARE SCHEME (ESS) ANNUAL REPORT
CHANGES IN THIS VERSION OF THE SPECIFICATION
Differences between version 1.0 and version 1.0.1
General key changes
- General wording changes to allow for consistency, update and clarify information and processes. Where the intent of the information content has not changed, the changes have not been tracked.
- Version numbering updated in accordance with Standard for specification documentation version numbering 1.0.0.
- Dates have been updated to reflect current year information.
- Reference to the use of DATs throughout the specification has been removed.
- All references to digital certificates throughout the specification have been removed.
- All references to the Magnetic media information form have been updated to Electronic storage media information form.
- Information content in the original Magnetic media information form attached to this specification (Section 13 Forms) has been updated and the form is now retitled Electronic storage media information form.
Changes to data records, values and definitions
- No changes have occurred to the data records or data file structure.
- Supplier data record 1
–Report specification version number field value has not changed i.e. it remains as FESSA001.0
- Definitions 7.67 Number of ESS interests with a deferred taxing point arising during the year and 7.74 Plan datehave been updated with information boxes to clarify requirements.
- Section 7 – all state or territory field definitions and edit rules have been updated for clarity.
ACRONYMS USED IN THIS SPECIFICATION
Acronym / DescriptionABN / Australian business number
ATO / Australian Taxation Office
BDE / bulk data exchange
CR / carriagereturn
ECI / electronic commerce interface
EOF / end of file
ESS / employee share scheme
HIN / Holder identification number
LF / linefeed
MIPS / MediaInformation Processing Services
SILU / Software Industry Liaison Unit
SRN / Security holder reference number
TFN / tax file number
WPN / withholding payer number
DEFINITIONS
Several key terms used in this specification:
Term / DescriptionEmployee / For the purpose of this document, an employee is defined as a participant and owner of employee share scheme (ESS) interests.
ESS interest / An ESS interest in a company is a beneficial interest in a share, stapled security or a right to acquire them.
ESS provider / An ESS provider is an entity that provides an employee share scheme to employees. It is the responsibility of the provider to ensure that the Employee share scheme(ESS) annual report is completed correctly and lodged with the Australian Taxation Office (ATO) by the due date.
Supplier / This is the organisation (as authorised by the ESS provider) that manages the affairs of one or more ESS providers. A supplier may be an ESS administrator, computer service provider, trustee company, tax agent, accountant or employee of an ESS provider.
The supplier is the organisation who has lodged the Employee share scheme (ESS) annual reportwith the ATO.
UNCLASSIFIED / 1
UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - EMPLOYEE SHARE SCHEME (ESS) ANNUAL REPORT
Table of contents
1 Introduction
Who should use this specification
Lodging electronically
2 Legal requirements
Reporting obligations
Retention of information
Extension of time to lodge
Privacy
3 Reporting procedures
Reporting for the first time
Test data
Installing the ECI Practice Facility
Reporting via the internet
Using ECI
Setting up for the ECI
Installing ECI software
Reporting via electronic storage media
Sending USB/flash drives, floppy disks, ZIP disks, CD-ROMs and DVDs
Data quality
Replacement media
Backup of data
4 Physical specifications
Floppy disks and ZIP disks
USB/flash drives
CD-ROMs and DVDs
Number of files on media
5 Data file format
File content
Sort order of the report data file
File structure example
6 Record specifications
Header records
Physical records
Floppy disks and ZIP disks
CD-ROMs, DVDs and USB/flash drives
CR, LF and EOF markers
Description of terms used in data record specifications
Supplier data record 1
Supplier data record 2
Supplier data record 3
ESS provider identity data record
Employee data record
File total record
7 Data field definitions and validation rules
Reporting of address details
Reporting of name fields
Currency for reporting
Field definitions and edit rules
8 Example of data file structure
Supplier data record 1
Supplier data record 2
Supplier data record 3
ESS provider identity data record
Employee data record
File total record
9 Algorithms
TFN algorithm
ABN algorithm
WPN algorithm
10 Notification of errors
Reporting amendments to the ATO
Providing information to the employee
11 More information
Electronic Specifications
Media Information Processing Services
ECI
ESS Provider enquiries
Software Developers Homepage
12 Checklist
13 Forms
UNCLASSIFIED / 1UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION - EMPLOYEE SHARE SCHEME (ESS) ANNUAL REPORT
1 Introduction
Who should use this specification
This specification is to be used in the development of software for the lodgment of electronic versions of the Employee share scheme (ESS)annual report, for the 20012-13 financial year onwards.
This specification is not intended to, nor does it provide a guide to the relevant legislation.
Lodging electronically
Providers and other organisations can lodge reports online through our free electronic commerce interface (ECI) software. Additional electronic lodgment methods areelectronic storage media or bulk data exchange (BDE) if currently a registered user.
For suppliers who have a withholding payer number (WPN) instead of an Australian business number (ABN) the ECI lodgment method cannot be used.
Lodging online will:
- reduce paperwork
- provide a secure way for reports to be lodged
- allows reports to be lodged after hours
- provide an online receipt when the report is lodged, and
- ensure that all of the necessary fields to lodge the report have been completed, via its built-in checks.
Providers that report online or by electronic storage media may also provide employees with electronic summaries or print them on plain paper.
For information on providing electronic summaries or printing them on plain paper, see the Electronic reporting specification – Self-printing employee share scheme statement - employee summaries at
If online reportingis not used, the Australian Taxation Office (ATO) will accept most electronic storage media, for example floppy disks, ZIP disks, CD-ROMs, DVDs and USB/flash drives.Data suppliers may choose the media that best suits them. The specification remains the same for all media types.
2 Legal requirements
Reporting obligations
Under Division 392 of the Taxation Administration Act 1953, employee share scheme providers are required to report information via an annual report to the Commissioner following the end of the financial year as the Commissioner allows in a form approved by the Commissioner.
The due date that providers must lodgetheir Employee share scheme (ESS) annual report information to the Commissioner is by 14 August after the end of each financial year.
Retention of information
Generally, documents/records must be kept for five years after the documents/records were prepared or obtained, or five years after the completion of the transactions or acts to which they relate (which ever is the later), unless the Commissioner has notified the taxpayer or agent that retention of the documents/records is not required. If the period within which the Commissioner may amend an assessment has been extended, the documents have to be kept for five years or until the end of the extended period within which the Commissioner may amend an assessment, whichever is the later.
A copy of the data file provided to the ATO must be able to be regenerated on request by the ATO for example, where a problem has been encountered in processing the information.
Extension of time to lodge
If additional time is required to lodge the annual report electronically phone 13 28 66.
Privacy
The Privacy Act 1988 limits the collection, storage, use and disclosure of personal information about individuals by the ATO, other Commonwealth Government departments and agencies.
New private sector provisions in the Privacy Act also regulate the way many private sector organisations collect, use, secure and disclose personal information. The private sector provisions aim to give people greater control over the way information about them is handled in the private sector by requiring organisations to comply with ten national privacy principles. These principles give individuals the right to know what information an organisation holds about them and a right to correct that information if it is wrong.
The Privacy Commissioner’s Guidelines to the National Privacy Principles and other relevant information sheets are available at .
It is the responsibility of private sector organisations to obtain their own advice on the effect of privacy law, including the National Privacy Principles on their operations.
3 Reporting procedures
Reporting for the first time
Software developers developing reporting software for the electronic generation of the Employee share scheme (ESS) annual report should refer to this specification when developing their application. Information is also available on the Software Developers Homepage website at .
The Software Developers Homepage website is maintained by the ATO on behalf of, and in consultation with, the software development industry and business advisers. It facilitates the development and listing of software which may assist businesses to meet their tax obligations.
Commercial software developers are required to register on the Software Developers Homepage website if they wish to list their products on that site. Software developers who do not wish to list products do not need to register in order to access information. Subscribing for email updates is recommended for developers to be notified of significant issues and new or updated specifications.
Test data
The ATO has developed a Practice Facility that software developers (including report developers and suppliers) may use to self test the contents of their electronic Employee share scheme (ESS) annual report.
The ATO ECI Practice Facility can be downloaded and installed on a local computer and used offline to validate the information provided in annual report files.
The ECI Practice Facility generates a comprehensive report of any errors detected during the validation process, which will help developers to correct their reports. This will help ensure that the accounting software package complies with this specification.
Installing the ECI Practice Facility
Go to to read the installation instructions. When the application has been successfully installed, select Business in the left hand menu, then Employee share scheme.
Installing the ECI Practice Facility will only allow software developers to perform testing functions.
For assistance with installing and using the ECI Practice Facility:- phone SILU on 1300 139 052,or
- email .
Reporting via the internet
Using ECI
Suppliers are able to submit their electronic Employee share scheme (ESS) annual report file via the ECI when a data file has been prepared and stored locally.
Data quality and format compatibility checks are performed by the ECI software when the data file is sent. The supplier is immediately advised of any problems. Automatic acknowledgment is provided when the files have been successfully received by the ATO.
The security features of the ECI address the most commonly held concerns over internet-based electronic commerce, namely:
- authentication (the sender is who they say they are)
- confidentiality (the communication can only be read by the intended recipient)
- integrity (the transmission cannot be altered without detection while in transit), and
- non-repudiation (the sender cannot later deny the transmission and content).
Setting up for the ECI
To use the ECI for reporting an Employee share scheme (ESS) annual report to the ATO, it is necessary to have:
- an ABN – apply electronically for an ABN using the Australian Business Register website at
- anAUSkey®- register at , and
- the ECI software installed on the organisation’s computer.
From April 2010, AUSkey® replaced digital certificates as they expired. For more information about AUSkey® click on the link .
Installing ECI software
1Go to to read the installation instructions and to check minimum hardware and software requirements.
2In the left hand menu, select Download & Install and follow the steps.
3Once ECI has been successfully installed and the application opened, select Businessthen Employee share scheme from the left hand menu column.
For assistance with installing and using the ECI software:
- phone 1300 139 373
- fax (02) 6211 9111, or
- email .
Reporting via electronic storage media
Reporters who wish to lodge annual reports by electronic storage media need to ensure that the media conforms to required physical specifications.Refer to section 4Physical specifications (page 8).
When the media is ready to be sent to the ATO, complete an Electronic storage media information form and enclose it with the media. If the media contains details for more than one ESS provider, the multiple Employee share scheme (ESS) providers page of the Electronic storage media information form must also be completed. If the media being sent contains multiple data files, also complete the multiple files page. This form is attached at section 13Forms (page48).
To ensure the ATO can contact the supplier if the media is unable to be read, all media must be clearly marked with a six character identifier that will enable easy reference. The same six character identifier must appear on the Electronic storage media information form.
Sending USB/flash drives, floppy disks, ZIP disks, CD-ROMs and DVDs
USB/flash drives, floppy disks, ZIP disks, CD-ROMs and DVDs should be packed in a Floppy Disk Post Pak or similar packaging and mailed to:
Media Information Processing Services
Australian Taxation Office
PO Box 923
ALBURY NSW 2640
The ATO will no longer pay mailing or courier costs.
Data quality
The ATO will process all electronic reports promptly. During processing, the information is checked for format compatibility and is subjected to data quality testing. If necessary, suppliers will be contacted with details of corrective action required.
The quality of the information provided in each report will be monitored and the ATO will advise clients if the data contained in the reports is unsatisfactory. Failure to comply with field data formats may result in rejection of the report. Corrective action is then required before re-lodgment.
If a report is rejected because of format incompatibility, the supplier will receive a report detailing reasons for the rejection.
Replacement media
The ATO will not provide replacement media.
Backup of data
It is the responsibility of the provider to keep effective records as part of their tax reporting obligations. A backup copy of the data sent to the ATO should be kept by either the provider or the supplier, so that the report can be re-submitted if necessary.
4 Physical specifications
Floppy disks and ZIP disks
The ATO uses IBM compatible equipment. Disks must be formatted accordingly. The ATO will accept:
- 3.5 inch disks, formatted to either 720 KB (double density) or 1.44 MB (high density), and
- ZIP disks formatted to either 100 MB or 250 MB.
Each disk must contain the three Supplier data records, the ESS provider identity record(s), Employee data record(s) and a File total record. Refer to the data records (page 16) in section 6 Record specifications. The data file on disk must not be compressed, zipped or archived. The ATO will accept disks formatted under any DOS level. However, disks formatted using DOS 4.0 (or higher) must not be formatted as a system disk.
USB/flash drives
USB/flash drives must be in USB 2.0 format. The ATO uses IBM compatible equipment so files must be formatted to be read in these machines. There should be no other files on the device.
CD-ROMs and DVDs
CD/DVD +/- R/RW media are acceptable. CD-ROMs and DVDs must be written as DOS text files. The ATO will not accept DVD-RAM or blu-ray disks. Data must not be compressed, zipped or archived. Care should be taken that the software used to write the data to the media does not format the media into a non-standard format such as UDF (Universal Disk Format). The ATO is not able to process disks formatted in a non-standard manner.
Number of files on media
The ATO will accept multiple files (datasets) on media, provided the file naming convention is followed. For information on naming conventions for single or multiple files refer to section 6Record specifications (page 11).
Up to 99 files may be written to a single piece of media. Each file must be complete and must conform to the requirements outlined in this specification. To ensure all files are extracted from the medium, the supplier must complete the multiple files page of the Electronic storage media information form,attached at section 13Forms (page 48).
To cater for virus detection facilities, compressed, zipped or archived data will not be accepted.A data file cannot be split, it must only be on one piece of media.In addition, all media must be clearly marked with a six character identifier that will enable easy reference.