ESOP Review

A message from the Australian Institute for Innovation:
A review of the ESOP regulations for start-ups and SMEs has been announced and The Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education will initiate a call for public submissions shortly.  We would like to put out a request for the innovation community to start putting together examples of companies that have incurred disadvantage from the existing option tax rules.  We need to prepare for this review as we believe the window of opportunity for submissions will be open for only a short period.

Disadvantages will include companies forced/encouraged by their investors to relocate overseas to access sensible ESOP structures, those that faced recruitment barriers, those that incurred undue costs to work through the current rules to setup an options plan and those that inadvertently stepped on the Tax tripwire.  It is not necessary in all cases to provide company names if confidentiality is believed important but obviously this is not ideal.  

It will be important to demonstrate to Treasury that there really is a practical problem.

If you have any questions or queries, please contact Paul Cheever directl

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