January 18, 2022

Volume XII, Number 18

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January 15, 2022

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New Aussie Rules Favour Share Schemes

On 1 July 2015 some important changes were made to the taxation of employee share schemes in Australia which will make employee option schemes more attractive for employees, particularly where the company qualifies as an eligible start-up.

  • For all employee option schemes there is the possibility of deferring the taxing point until exercise of the option (previously vesting) if certain conditions are met.
  • For employees of qualifying start-ups, if certain conditions are met, the taxing point can be deferred until the shares or options are ultimately disposed of, and the disposal will be taxed as a concessional capital gain.
  • A legislative determination has been issued which gives a simple and concessional method of valuing shares in start-ups and small companies.
  • Standard documentation has been issued by the Tax Office which can be used to implement simple employee option plans.
© Copyright 2022 Squire Patton Boggs (US) LLPNational Law Review, Volume V, Number 182
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About this Author

Louise A. Boyce Tax Attorney Squire Patton Boggs Sydney, Australia
Tax Counsel

Louise Boyce is a taxation specialist with expertise in the corporate and employment sectors, as well as in international taxation matters. Louise is dedicated to delivering comprehensive advice in an easy-to-understand manner. She has advised many key clients over a number of years. Her double qualification as an Australian Chartered Accountant and lawyer enables her to provide clients with practical and effective taxation advice. The practice provides full-service taxation advice, especially in relation to transactional taxation, thin capitalisation, cross-border re-domiciliations and...

61 2-8248-7802
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