Division 13A Share Plans

Division 13A of the Income Tax Assessment Act provides for:

  • A share plan which offers at least three-quarters of permanent employees of 3 years standing an ordinary share in the employer’s company;
  • A Tax-Exempt model (Exempt Plan) under which employees can receive up to $1,000 worth of shares per year;
  • A Tax-Deferred model (Deferred Plan) under which employees can defer tax liabilities for up to 10 years;
  • Up to 5% of the firm’s voting shares per individual employee;
  • Full tax-deductibility for employer contributions to an ESOP.
  • An Option plan which can always be targeted to a select group of employees.

 

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