Incentivising Staff in the SME Sector

In the SME sector, it is quite common for businesses to reward employees by offering them equity in the business.

However, the issue of equity could result in a large up-front tax bill to the employee under section 83A-25 of the Income Tax Assessment Act 1997 if it is not done correctly and assuming the concessions in Division 83A for start-up companies do not apply.

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