{"id":33764,"date":"2023-10-20T14:31:46","date_gmt":"2023-10-20T14:31:46","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/defer-when-employee-shares-are-taxed-for-start-ups-treasury-urged-startupsmart\/"},"modified":"2023-10-20T14:31:46","modified_gmt":"2023-10-20T14:31:46","slug":"defer-when-employee-shares-are-taxed-for-start-ups-treasury-urged-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/defer-when-employee-shares-are-taxed-for-start-ups-treasury-urged-startupsmart\/","title":{"rendered":"Defer when employee shares are taxed for start-ups, Treasury urged – StartupSmart"},"content":{"rendered":"
Chartered accountancy and advisory firm William Buck has made a submission to the federal Treasury\u2019s consultation on employee share schemes for start-ups, arguing the point shares and options are taxed at should be deferred until they\u2019re sold.<\/p>\n
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William Buck, which advises numerous start-ups in Australia, says gains made on the realisation of shares or options should also be taxed as a capital gain and be eligible for a 50% discount.<\/p>\n
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\u201cIn a start-up context, employee share and option plans are used to attract, retain and incentivise key employees,\u201d director Greg Travers wrote in the submission.<\/p>\n
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\u201cThe key objective of employee share and option plans is to achieve improved performance of the business through alignment of the economic interests of employees with that of the owners of the business.\u201d<\/p>\n
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Start-ups have complained that the current tax rules around employee share schemes, which were introduced in 2009 and see shares taxed at the time they\u2019re awarded, hinder the ability to attract talent.<\/p>\n
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Treasury is considering submissions it received during consultations into what changes should be made to the tax treatment of employee share schemes for start-ups.<\/p>\n
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