Employee Share Scheme tax rules has been saved
Employee Share Scheme tax rules
A big step in the right direction for start-ups
16 January 2015: On Wednesday, the Government released its draft of the proposed amendments to the Employee Share Scheme (ESS) tax rules.
“In our ‘Barriers to Innovation’ submission, Deloitte called for a broader change to the tax on employee options as well as specific equity tax incentives for start-ups,” comments Rob Basker, Deloitte Australia global employer services partner. “We are pleased to see that the Government shared our view and that the amendments focus on both.
“In the Deloitte submission we noted a holistic view of the ESS changes, and not just a simplified solution, was needed to meet the needs of the start-up community. Deloitte’s submission called for many areas to be considered and addressed together if the Government was serious about helping the start-up space. The vast majority of our suggested changes have been included in the draft, or called for in the further consultation.
“While the draft of the new tax rules will need to be worked through to ensure the changes will be fully effective, Deloitte is pleased the start-up community’s concerns are being addressed.
“However, one question remains on the definition of a start-up, which may need to be re-thought. If there is an aggregate turn over threshold and an incorporated maximum period of 10 years, does it matter if a company is listed or not?”
Notes to Editors:
The table below outlines the recommendations outlined in Deloitte’s ‘Barriers to Innovation’ submission, and those announced by the Government earlier this week:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, and winner of both the Australian Financial Review/CFO Audit Firm of the Year and Accounting Firm of the Year awards 2013, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. Formore information, please visit Deloitte’s web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2015 Deloitte Touche Tohmatsu