Today’s corporate landscape is fluid and fast-moving. The best people have a global playing field and shifting loyalties.

Employee share schemes can help you access crucial categories of the talent pool with equity arrangements that form part of your employees’ remuneration packages. Whether your company is a local start-up or a global player, you can save vital capital and incentivise your best employees with an employee equity program.

With top talent in high demand, the 2015 reforms to the employee share scheme tax laws have made the implementation of an equity reward scheme more attractive. The revised legislation offers:

  • significant tax concessions for employees of start-up companies
  • greater flexibility to companies to tailor the scheme to the employee’s tax position.

There’s a bit to take into account: the best arrangement, legal documentation, tax and accounting implications, valuations and the business’s strategic goals.

How we help

Our strong technical know-how backed by our specialist skills and tax regulatory experience means that we can help you understand the tax and accounting implications of an equity scheme as well as the pros and cons of alternative executive remuneration arrangements. Our team works with you to choose and design the right plan to achieve your company’s objectives while managing your employees’ tax outcomes.

In practice, this means that we:

  • review the drafting of supporting legal documents to ensure they achieve your objectives and deliver the agreed tax outcome
  • prepare valuations for the purpose of financial accounts or ASX notices
  • provide advice to your employees of the tax implications for them of receiving equity awards
  • help you meet your statutory reporting obligations to the ATO and your employees in this area with ATO audits.

Find out more

Peter Hills
Get in touch
Peter Hills
Partner & Head of Tax - Perth
Contact Peter Hills Learn more about Peter Hills
Peter Hills
Contact Peter Hills Learn more about Peter Hills
Peter Hills
Partner & Head of Tax - Perth
Peter Hills
+61 8 9480 2126

Latest Employee share scheme content

View more
Employment Solutions year end reminders and common pitfalls
Client Alert Employment Solutions year end reminders and common pitfalls
As the end of the financial year approaches, it’s a timely reminder of three key employment tax lodgements and the common errors we see in the market.
George Bendall
George Bendall
| 6 min read | 12 Jun 2024
Employee Share Schemes – it’s that time of year again
Insight Employee Share Schemes – it’s that time of year again
Maximise tax benefits with Employee Share Schemes. Stay compliant with ESS reporting. Retain top talent with effective remuneration.
Peter Hills
Peter Hills
| 10 min read | 13 Jun 2023
Recent employment tax updates for finance and payroll leaders
Client Alert Recent employment tax updates for finance and payroll leaders
During the FY23 financial year, our Employment solutions team highlighted key updates, issues and ATO review activity that finance and payroll leaders need to be across in a series of webinars, seminars and insights. Here we’ve summarised some of those key items which remain relevant as we approach FY24 including fringe benefits, single touch payroll, superannuation guarantee, employee vs contractor and employee share schemes.
Thomas Isbell
Elizabeth Lucas
Peter Hills
George Bendall
| 6 min read | 23 May 2023
    View more

    Tax Agents Disclosures

    The Tax Practitioners Board maintains a register of tax agents and BAS agents. You can access and search this register here. This register includes details of the registration (and conditions if applicable) of Grant Thornton and our individual registered tax agents with whom you engage.

    Your engagement letter with Grant Thornton and the Standard Terms and Conditions set out our procedures for dealing with problems or complaints. The Tax Practitioners Board also has a complaints process in relation to tax agent services as outlined on their website which can be accessed here. 

    Tax agents have obligations to the Tax Practitioners Board and to their clients.  You also have obligations under the taxation laws and to your tax agent.  Please refer to these obligations on the TPB website or the TPB’s fact sheet "Information for Clients".

    Section 45 of the Tax Agent Services (Code of Professional Conduct) requires Grant Thornton to notify you if it becomes aware of certain events which have occurred in the past 5 years. Grant Thornton is not aware of any such events.