Changes to employee share schemes a win for talent

Employee share schemes have been overhauled as a part of Treasurer Josh Frydenberg's Budget 2022/23 announcements, with the government introducing a number of changes to increase access to share schemes.

Companies use employee share schemes to incentivise current and potential employees by offering an opportunity to purchase shares or options in the company, usually at a discount.

The government has now removed the previous value cap placed on employees looking to purchase shares in an unlisted company, replacing it with a new monetary cap.

Employees can now purchase up to $30,000 worth of shares per year, a dramatic increase from the previous $5,000 cap. This means that employees can buy as many shares as they would like, at any value, so long as they do not pay more than $30,000 each year.