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.