We are encouraged to see the Government taking Employee Share Schemes (ESS) seriously and doing their bit to make it a cost effective process for startups to introduce to their business. The Government’s Growing Jobs and Small Business package is about supporting innovation and creating the right conditions for Australian entrepreneurs. The changes to ESS will make it easier for Australian firms to attract and retain high quality employees in a globally competitive labour market.
The Australian Taxation Office (ATO) have produced a set of standard document templates that are designed to assist eligible startups in establishing an Employee Share Scheme of Options to acquire newly issued ordinary shares.
Whilst this is a great initiative and a good head start for startups, we encourage you to exercise caution and ask your tax and legal advisor to review these documents before signing to ensure you are fully aware of the consequences.
Key ATO links for more information:
- Standard documents for the startup concession
- Key ESS changes from 1st July 2015
- General information on ESS
We are here to answer any questions you have. Please feel free to contact us at ourteam@azuregroup.com.au or join in on the conversation on Twitter by tagging us in @azure_group and using #essau.
This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.
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