Employee Share Plans

Published on 23 Oct 2013 | Took place at The Tax Institute, Sydney, NSW

Incentivising employees is a perennial problem. Providing a key employee access to an interest in the success/profitability of the business is often seen as a good idea. Yet there will be impediments (particularly in the way that the tax laws apply) and consequences depending on how it is approached/achieved.

For listed entities decisions normally will apply to a larger group of employees and will usually be more consistent. However, with SMEs it is expected offerings will be made on an individual basis and will need to have regard to the perceived importance of the person to the business. This can lead to multiple arrangements arising, each with potentially different tax consequences for the employer and the employee.

This session explored this area with a focus on both the big picture and many of the critical points of detail.