The Federal Government announced on 14 October 2014 that it is changing the rules on employee options and that new tax concessions will apply for employee options and shares in startup companies from 1 July 2015.
Additional tax concessions for startups is a great start and finally reflects the Government working to the assist with the rapid expansion of the new engine room of the Australian economy.
To assist with what a startup is, Treasury have defined a startup as:
- Having an aggregate turnover of not more than $50m
- Are unlisted
- Have not been incorporated for more than 10 years