Government Takes New Measure to Help Small Business
Small business start-ups and their workers are set to win from the federal government’s planned doubling of the employee share scheme limit to $10,000 a year per worker for unlisted companies. Treasurer Josh Frydenberg announced the boost last Tuesday. It makes it easier for private businesses to issue more equity to employees to align the interests of employers and their staff.
The measures are being promoted as a way for employees to invest more easily in the company they work for and another way smaller businesses can raise capital. Mr Frydenberg said the government would simplify the regulatory framework for businesses offering employee share schemes and also increase the existing $5000 cap for unlisted companies paying workers in equity. The changes would help employers to attract, retain and motivate employees and grow their businesses, which is particularly important for start-ups in early stages of growth.
Under the existing law, there is a $5000 limit per employee under which unlisted companies can offer eligible financial products.
The government is also lowering taxes for small companies to 25 per cent, a decision Labor has matched.
“Backing small business is part of the Coalition government’s plan for a stronger economy,” Mr Frydenberg said.
Separately, big businesses and governments delaying payments to small business suppliers will be “named and shamed” after the Morrison government asked the small business ombudsman to review the impact of late payments on the cash flow of small firms.
By Lee Xie (Senior Project Manager)
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