Articles

ASIC SPOT CHECK

Australian Securities and Investments Commission (ASIC) will be conducting "Spot" checks on the value of options and other employee equity disclosed in the accounts of companies listed on the Australian Stock Exchange.

Retiring Allowance

A Melbourne remuneration consultant has urged those eligible to contribute so-called retiring allowances to superannuation to do so before the law changes.

<click here> to read the full Financial Review article with John Day written by John Wasiliev.

Eligible Termination Payments

In the rush of media and expert reports following the 9 May 2006 Federal Budget, an important area often overlooked was the proposed changes from 1 July 2007 to the taxation of Eligible Termination Payments.

From 1 July 2007, the Australian Taxation Office will collect 45% plus the 1.5% Medicare Levy on any payment above $140,000 instead of 30%.

<click here> to read the Australian Financial Review’s article on this topic.

Geared ESOPs

Contrary to the prevailing presumption that ESOPs cannot be effective capital raising exercises, RSG has developed the Geared ESOP in Australia as a key business, financial and succession planning vehicle for business owners and their employees. <click here> to read Gary Fitton’s landmark article in Thomson’s ATP, in which he explores the attributes of this important development in employee share plan design.

The Section 139E Election

For employees participating in employee share or option plans, the decision of whether and when to make a section 139E election to be taxed upfront is a decision which all employees need to make. <click here> to read to read Gary Fitton’s article, published in Thomson’s ATP, where he explores the issues surrounding this decision in the light of a recent Federal Court decision.

Pay and Share Options in the New World

RSG has developed an employee equity valuation calculator to measure the value of options, which meet rigorous new accounting expensing and remuneration disclosure requirements. To read Gary Fitton’s article on how options are valued to form a vital part of total remuneration packages. <click here>

DMC Outsourcing – the first Case Study Organisation (CSO) Implementation.

DMC is the first of the CSO selected by the Department of Employment and Workplace Relations (DEWR) to implement an Employee Share Option Plan (ESOP) developed by RSG.

For more information, please <click here>

RSG Employee Equity Calculator

RSG, in conjunction with a leading academic specialising in option valuations, have developed an employee equity valuation calculator, which accurately determines the value of employee share and option benefits, in line with the requirements set by the Australian Accounting Standards Board (AASB). These valuations will form the basis for:

1. Communicating share and option benefits to employees as part of their total remuneration packages;
2. Disclosing and expensing of those benefits in the company’s annual accounts; and
3. Determining the amounts which can be paid and reasonably claimed as tax deductible contributions to a dedicated employee share trust.

In many companies, the preparation of their accounts for the year ended 30 June 2005 will be the “crunch” day for the valuation of employee share and option benefits.

To read a recent article on this topic from the Australian Financial Review, please <click here>

What do clients say about RSG?

Palm Springs is featured on the DEWR website as an example of a successful general employee share plan. Here is what they say about their plan and RSG.

“…I have no doubt our share plan has benefited our firm through closely aligning employee and shareholder interest…”

“… We engaged the services of a specialist share plan consultant [RSG]… The benefits of using such a professional, who can tailor the plan specifically to your business’ needs and bring their wealth of experience to bear, far outweigh the costs of this service”

To read more, please <click here>

High Performance Workplace

Recent studies have demonstrated that high performance workplaces adopt a Partnership Approach to the achievement of organisational objectives and exceptional performance, characterised by:

• High employee involvement;
• Dynamic Human Resource practices; and
• Effective employee reward and commitment as a stakeholder.

Please <click here> to read more about the Partnership Approach.

Time Games: The Extension of Time to Make a Section 139E Election

In an article published in Thomson’s Weekly Tax Bulletin, Gary Fitton, a Director of RSG, reviews the pitfalls and remedies for employees unaware of the taxation requirements for participation in their company’s employee share plan, and seeking to access the taxation concessions and exemptions the Government has implemented to encourage employee share plans.

To read the article, <click here>

Commissioner loses share plan test case

In the Indooroopilly case, the Federal Court confirms that contributions to employee share plan will not be subject to fringe benefits tax"