Be Interactive Pty Reviews Australia's New Tax Concessions to Aid Entrepreneurship

    BRISBANE, AUSTRALIA, November 08, 2014 /24-7PressRelease/ -- The Australian government have announced changes to reform the tax treatment of Employee Share Schemes in an attempt to encourage entrepreneurship and support innovative start-up companies. Employee Share Schemes give employees a financial share of the company's potential success and this helps start-up companies to attract and retain high-quality staff.

To start encouraging entrepreneurship, the government have stated they will reverse the changes made in 2009 to the taxing point for options. This change applies to all companies and means that discounted options will be taxed when they are converted to shares rather than when the employee receives the options. As well as this the government will allow Employee Share Scheme options or shares that are provided at a small discount by eligible start-up companies to not be subject to up-front taxation, so long as the shares or options are held by the employee for at least three years. Furthermore, options under certain conditions will have taxations deferred until sale. To be eligible for this, a company will have to aggregate turnover of no more than 50 million Australian dollars, be unlisted and be incorporated for less than 10 years. The official statement regarding the changes also states that the government would extend the maximum time for tax deferral from 7 to 15 years, in order to give start-ups more time to be competitive and succeed. These changes are proposed to come into effect on July 1, 2015.

Be Interactive Pty believes that this is likely to impact small business in a positive way as it puts less pressure on them and gives them longer to learn and succeed in business before being taxed. The firm believes that this will also encourage more people to pursue entrepreneurship because they will feel as though they are being given a fair chance to succeed and will have less money worries when considering starting the business.

Entrepreneurship is essential to the growth of the economy because new businesses provide new jobs which increases consumer income. This, in turn, increases consumer spending and aids growth. Small businesses and entrepreneurs provide more than half of new jobs added to the economy every year. Be Interactive Pty says that in many cases, entrepreneurial activity increases competition and, with technological or operational changes, it can increase productivity as well.

Be Interactive Pty is an outsourced sales and direct marketing firm located in Brisbane. The firm specialize in face-to-face marketing which involves them connecting with consumers on behalf of their clients to represent their products/services on a one-to-one level. This method of marketing creates long-lasting and personal relationships between brand and consumer and this helps to improve their clients' brand awareness, customer acquisition and brand loyalty.

About Be Interactive Pty: http://www.beinteractivepty.com/aboutus/

Be Interactive Pty is an outsourced sales firm specialising in a unique from of direct marketing which delivers a high ROI for their clients.

Follow @BeInteractiveAU on Twitter and 'Like' them on Facebook.

# # #