Today’s corporate landscape is fluid and fast-moving. The best people have a global playing field and shifting loyalties.

Employee share schemes can help you access crucial categories of the talent pool with equity arrangements that form part of your employees’ remuneration packages. Whether your company is a local start-up or a global player, you can save vital capital and incentivise your best employees with an employee equity program.

With top talent in high demand, the 2015 reforms to the employee share scheme tax laws have made the implementation of an equity reward scheme more attractive. The revised legislation offers:

  • significant tax concessions for employees of start-up companies
  • greater flexibility to companies to tailor the scheme to the employee’s tax position.

There’s a bit to take into account: the best arrangement, legal documentation, tax and accounting implications, valuations and the business’s strategic goals.

How we help

Our strong technical know-how backed by our specialist skills and tax regulatory experience means that we can help you understand the tax and accounting implications of an equity scheme as well as the pros and cons of alternative executive remuneration arrangements. Our team works with you to choose and design the right plan to achieve your company’s objectives while managing your employees’ tax outcomes.

In practice, this means that we:

  • review the drafting of supporting legal documents to ensure they achieve your objectives and deliver the agreed tax outcome
  • prepare valuations for the purpose of financial accounts or ASX notices
  • provide advice to your employees of the tax implications for them of receiving equity awards
  • help you meet your statutory reporting obligations to the ATO and your employees in this area with ATO audits.

Peter Hills
Partner & Head of Tax - Perth
Peter Hills