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The government has announced changes to the employee share scheme to improve the ability for small businesses to offer the initiative to employees to help grow their business.
Under the altered regime, the government said it proposes to simplify and extend the initiative by:
Treasurer Josh Frydenberg said the initiative will simplify the current regulatory framework, help employers attract, retain and motivate employees, and reduce the time and cost burden for businesses.
He added that the measure is particularly important for start-ups in the early stages of growth.
“Employee share schemes allow employees to invest in the business for which they work. They are offered as an incentive to employees, allowing them to share in the growth and success of the business,” Mr Frydenberg said.
“The current regulatory framework is too complex and fragmented and ultimately discourages businesses – particularly, small businesses – from offering employee share schemes.”
Mr Frydenberg also said the changes build on improvements the government has already made to make employee share schemes more attractive, such as improving the taxation treatment of employee share schemes and limiting the requirement for disclosure documents given to employees to be made available to the public.