Australian Employment remuneration and incentives can now be allocated between cash and share schemes tax-effectively, to more closely match US and other overseas benefits policies.

Changes to the Australian employee share scheme (ESS) taxation regime, taking effect from 1 July 2015, allow taxing points to be deferred for longer and introduce a significant new concession for “start-ups”. For new investors into Australia, it is easier for Australian plans to replicate or match the schemes of US, UK and other overseas parent company schemes.

The Australian Government has released draft legislation which, if implemented, will boost the tax concessions for shares and options acquired under employee share and option plans on and from 1 July 2015.

In 2009, changes to the tax treatment of employee share and option plans saw the end of these incentive schemes in Australia.  The