employee share schemes

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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.

From 1 July 2015, changes to Australia’s employee share scheme taxation regime will reduce the risk of employees being hit with unfunded tax liabilities by:

  • permitting taxing points to be deferred for longer periods; and
  • introducing a significant tax concession for eligible start-ups’ employee share schemes.

For an overview of the changes, and what they…