Employee share scheme changes support Victorian start-ups

VECCI Chief Executive Mark Stone has welcomed the Federal Government’s changes to the taxation of employee share schemes which come into effect today and support start-up businesses to attract talent and grow.

The changes mean that employees who are issued with options will generally be able to defer tax until they convert the options to shares. Previously, employees were obligated to pay tax when those options vest.

"Also, under the changes eligible start-ups can issue options or shares to their employees at a discount, and have that discount exempt (for shares) or further deferred (for options) from income tax," Mr Stone said.

"These measures were called for by VECCI’s Small Business Taskforce in its report, Small business. Big opportunities. They will encourage innovation and productivity which are key to keeping small business competitive."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

ends