The Bill to enact the Government’s amendments to the taxation of employee share schemes (ESS) has received Royal Assent and is now law. Click here to view our previous alert on this topic.

Standard documents and safe harbour valuation methods 

The Australian Taxation Office (ATO) has made available templates for an Employee Option Plan and an Employee Letter of Offer that are intended to reduce the costs for start-ups of implementing an option plan. The templates are available on the ATO website (see Standard documentation). We would be happy to assist you with tailoring these documents to suit your needs.

A safe harbour market valuation methodology has also been developed to give certainty to start-ups that are valuing their company (see Legislative Instrument).