An Option to reduce your clients’ stress

I’ll always be here for you dad!

There is plenty that small business owners can, and do, worry about. If your client base includes growing SMEs, you will have heard a few of these common grievances. Two of the grievances mentioned strike home with the SMEs that I speak with – finding and retaining reliable staff and ensuring steady cash flow.


I believe it’s not worth worrying about something you can’t control. You just need to take control over those things you can. While it may not always be that simple, it’s a useful mindset for approaching issues when they arise.

Cash flow and staffing are two issues that business owners can control. Importantly, you can increase your value proposition by helping your clients find solutions to these issues.

One solution you can raise with your clients is Employee Share Schemes (ESSs), also known as Employee Share Option Plans (ESOPs). An ESS involves an employer providing discounted Shares in their company to an employee, or providing Options allowing the employee to acquire Shares in the future.

By offering Shares or Options in their business to valued staff members in lieu of cash rewards or bonuses, employers can:

  1. Keep these much needed funds in their businesses, helping cash flow; and
  2. Encourage valued employees not only to stay with the company, but to also help grow the business.

In July 2015, new methods for taxing employees who participate in ESSs were enacted; making ESSs a very attractive opportunity for both employers and employees. We’ve created an ESS fact sheet, accessible here, which outlines some of the benefits of ESSs and the tax discounts available. You may be able to use this as a conversation starter towards helping relieve some of your clients’ stress.

Back to Articles
Redchip

Recent Articles

empty hall
Major change to the Commercial Building Disclosure Program

From 1 July 2017, expansion of the CBD Program will require most sellers and lessors of office space 1,000 square metres or more to obtain a Building Energy Efficiency Certificate before the building goes on the market.

Read more
With House Model And Stack Of Coins On Desk
GST and new property sales

From 1 July 2018, purchasers of new residential premises (new homes or apartments) and subdivided residential lots will need to pay any applicable GST on the sale directly to the ATO.

Read more
aircraft Wing
Investors lose depreciation and travel deductions

From 1 July 2017, Australian Residential Property Investors will lose two long-standing tax deductions for residential properties as a result of the Federal Budget 2017.

Read more