Business Finances - Expanding access to employee share schemes

The Government will remove regulatory barriers and expand access to employee share schemes

Employers, especially start-ups, will benefit as employee share schemes are a powerful tool for attracting and retaining staff. Employees at all levels will be able to directly share in the business growth they helped to generate.  

The changes include:

• Removing the current $5,000 "value cap" that limits the value of shares that can be issued to non-executive staff each year.
• Allowing employers to offer an unlimited number and value of shares provided the employee is not charged more than $30,000 each year.
• Where options are issued, the annual $30,000 cap can be accrued over five years, for a total value of $150,000.
• No monetary cap where the employee is able to immediately take advantage of a planned sale or listing.
• Removing regulatory requirements for offers to independent contractors, where they do not have to pay for interests. 

It is important to note that these are regulatory reforms not tax reforms.  The shares or options will still be taxable under the existing employee share scheme tax rules.

These regulatory reforms build on the tax reforms introduced earlier this year that removed cessation of employment as a taxing point for employee share schemes.

Click HERE to download the report as a PDF or search links below to read on...

Personal Finances

• Cost of living relief: fuel excise cut and tax offset  
• Increasing the Medicare low-income thresholds

Business Finances

• COVID-19 tax concessions
• Boost to small businesses
• Expanded Patent Box Scheme
• Australia-UK Free Trade Agreement
• Tax audits and reviews
• Expanded Employee Share Schemes

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Disclaimer: This newsletter contains general information only. No responsibility can be accepted for errors, omissions or possible misleading statements. No responsibility can be accepted for any action taken as a result of any information contained in these articles. It is not designed to be a substitute for professional advice and does not take into account your personal circumstances.