'Getting started' kits
Substantial changes to the taxation laws governing employee share schemes have been announced in the 2008-09 Budget. These changes are not reflected in the information provided on this site or in the 'Getting Started' kits. You should therefore seek information and advice from a suitably qualified tax professional.
What is the ‘Employee share plans: Getting started’ kit?
The 'Getting started' kit is an initiative of the Department of Education, Employment and Workplace Relations (DEEWR) designed to make employee share ownership easier to access for all Australian businesses and employees.
To assist and encourage more companies to establish an employee share ownership plan (ESOP), the department has produced a ‘Getting started’ kit containing guidance material and standard documents for setting up an ESOP. By using the kit, employers will have a step-by-step guide to begin the process of implementing an ESOP, and will be able to customise their ESOP to suit their situation and business needs. The kit provides instructions and standard documents for setting up two different kinds of ESOPs: a tax exempt plan and a tax deferred plan.
Why introduce employee share ownership?
The Government is committed to the goal of increasing organisational participation in ESOPs. The Government recognises that ESO potentially improves the productive performance of enterprises, resulting in a motivated workforce, and increased staff loyalty. ESO allows both employees and employers to benefit through aligning their interests and their goals. This creates a ‘win-win’ situation, as employees can benefit directly when their business does well, while employers benefit through a more committed workforce.
Who can use the kits?
The information in the kits is relevant to any Australian business: listed or unlisted; small, medium or large. The material in the kits is designed to be used by business owners and their human resources manager.
How does the kit work?
As the name suggests, the kit helps businesses to ‘get started’ on the road to developing an ESOP. This includes guiding businesses through the initial decisions about what type of incentive may be most suited to their business – in some instances this may not be an ESOP but another form of financial reward scheme. The kit provides an overview of the other types of financial participation schemes that businesses can implement, and more in-depth information specifically about ESOPs.
Businesses will still need to seek the advice and assistance of qualified financial or legal advisors to implement the plan in their workplace.
What are the next steps?
Click here to order the 'Getting started' kits.
Click on the following link for the latest 'Getting started' kits - update and CD ROM Patch.