Published on 03 May 07
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
With unemployment at record lows and with capacity constraints becoming a key issue it is essential for employers to attract and retain key employees. Employee Share and Option Plans are becoming an essential component of the package an employer will offer. For many employees these are regarded as a windfall. However, whilst these plans are intended to provide a reward and incentive to employees, they do have a tax cost associated with them which if not given due consideration at the appropriate time can result in a substantial reduction in the after tax benefit provided to an employee. This paper highlights the tax issues relating to these plans and some of the opportunities that may arise.
Current at 22 June 2009
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