ESSs are a way for startup business to attract and retain high-quality staff they may not otherwise afford – by giving a share in the company’s potential succes, and as such allow them to have skin in the game.Under the current rules employees can become liable for significant tax based on the value of the shares or options in the year of issue, even if they don’t earn any income or before this value is realised by sellings. One online retailer executive described the present structure as being “like paying tax on the winnings of the lotto tickets before you win the lotto”.
It is worth noting the current ESS rules allows employees that are subject to the discount up-front, the concession to exempt from income tax the first $1,000 of shares scheme interests given to an employee who earns less than $180,000 a year.
The proposed changes are planned to grant shares or rights after July 1, 2015, to be taxed when they are exercised rather than when they are received. (currently draft legislation only)
Joint Venture tax understanding for property developers in Australia Joint Venture Agreement What is a (JV) for Property Development A joint venture (JV) is a cooperative agreement between two or more parties in which all parties contribute their resources (such as...
National Disability Insurance Scheme What is the NDIS / SDA? NDIS The National Disability Insurance Scheme is a Federal Act developed in 2013 to allow people with a disability to exercise choice and control about matters that affect them- such as their housing....
Property Price Increases and Tax? Property Prices Increase what about taxes? Residential properties values have increased in some cases over 30% in the last year, what does this mean for owners and investors? Family Home If the property being sold is the family home...
All directors or intended directors need a DIN All directors or proposed directors within 12 months of directorships of companiescorporate associations & body corporates registered under the Corporations Act.Corporate Trustees for TrustsSMSF Corporate Trustee Need...
Small Business Clients Business in the following industries that make payments to contractors or subcontractors needs to lodge a Taxable Payment Annual Report (TPAR) by the 28th of August each year. Black or Cash Economy Detection The TPAR is a black economy measure...
COVID-19 $150,000 Instant Asset Write-Off The best tax breaks for small business is the instant asset write-off, a great way for your business to purchase capital assets and get an immediate tax deduction. As part of the COVID-19 Coronavirus Stimulus Package, the...
Employer payments to employees Job Keeper Payment OverviewSupport for Employers to keep employees on the books! Employer Register Now for Jobkeeper The Job Keeper Payment will provide a flat $1,500 a fortnight per employee for businesses to retain or rehire nearly six...
2nd Wave COVID-19 Stimulus Packages Income support for individuals & Sole Traders Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a...
Corona Virus Stimulus Packages Low Income Australian The Australian Government will provide financial assistance to around 6.5 million lower-income Australians in response to the Coronavirus.One-off payments of $750 will be paid to around 6.5 million lower-income...
Flipping houses can be a great way to make a living or a handy lump of cash quickly, however it involves Finding the right propertyFinancing can be on a short-term basisGetting the number rightExecuting the makeover and selling in the shortest time possibleGetting the...
