When you found a new business you’ll want to make sure that you’re able to attract only the best for your business. One way of doing this is by offering your employees financial incentives that they can’t get from other companies.
This is something that the Australian government truly understands. For this reason in 2015 they changed their tax laws in regards to Employee Share Ownership Plans (ESOP). At that time they introduced a set of start-up tax concessions.
Startups that meet certain qualification rules can now benefit from tax concessions for Employee Share Schemes (ESS). Thanks to these ESOP startup concessions employees don’t have to pay any taxes upfront on shares or options they’re granted. They only pay these taxes when they’ve profited from the shares they’ve been granted – something that usually only happens when their company is sold or listed.