ATP accountants and tax mortdale ATP accountants and tax mortdale ATP accountants and tax mortdale ATP accountants and tax mortdaleATP accountants and tax mortdale
PHONE: 02 8850 3888
EMAIL:
ENQUIRE ONLINE

New approach to taxing employee shares welcomed by startups

Posted on Sep 22, 2014 by editor

A tax reform by the federal government will increase the scope of employers to issues employees with shares and stock options. Prior to 2009, employees receiving shares or stock options were able to defer paying tax, with many only paying CGT once they have disposed of the assets down the line. In order to increase budget revenue, the Labour government changed this arrangement, meaning that when an employee received shares, they incurred an immediate tax liability.

These restrictions meant that many startups often had to start paying employees higher salaries in order to retain talent. However, the benefits of startups being able to issues shares and stock options go beyond freeing up valuable cash flow. When employees have a stake in the future success of a startup commitment, motivation and engagement soar.

The federal government is considering a scheme modelled on a similar British approach, whereby the option to defer tax is limited to smaller companies. The Treasury is currently investigating what size thresholds will boost productivity without creating a problematic shortfall in budget revenue.

ATP Accounting knows what it takes to run a successful business. They will position you at the cutting edge of business growth.
Take the step and get help to grow your business, minimise tax and protect your hard-earned assets.
Call us today on (02) 8850 3888, send us an email to or send us a message here.

New approach to taxing employee shares welcomed by startups New approach to taxing employee shares welcomed by startups New approach to taxing employee shares welcomed by startups New approach to taxing employee shares welcomed by startups New approach to taxing employee shares welcomed by startups

Join our mailing list

Stay in touch with ATP Accounting

  • This field is for validation purposes and should be left unchanged.