Business owners often look to different alternatives to motivate and retain staff. One such method is to provide equity (ie shares), and, over the past few years I have written a number of articles about how business owners can best remunerate their key managers and structure long term incentives in a tax effective manner.
Recently, the Australian government announcement proposed changes to the Australian tax legislation on employee shares schemes and I have been asked whether this provides an opportunity. The bad news is the proposed legislation is relatively commercially useless for most established businesses. It has been designed for early stage or start-up businesses that have little to no value. As such, most businesses will still use other structuring alternatives to reward with shares or options.