THE EMPLOYEE INVESTMENT TRUST

The concept involves the establishment of a special purpose Employee Investment Trust (EIT). The EIT receives (deductible or non-deductible) contributions or loans from Employer and purchases approved investments (for example, listed ASX shares). Those approved investments are to be held for the benefit of participating employees. Employees are in turn issued with units in the trust (investment units), the deed and the particular terms of issue of the Investment Units govern their entitlements to the investment benefits.

EMPLOYER TYPE

• Public Companies
• Private Companies.
• Not For Profits.
• Employers who are not Companies.

STRATEGY

• Retention Strategy.
• Deferred Bonus.

ADVANTAGES

• The plan is flexible and enabling – that is, it suits a wide range of strategic remuneration applications.
• Investment choice may be as flexible as allowed by the employer.
• Vesting if applicable is controlled by Terms of Issue of Investment Units as instructed by the Employer.
• Funding is made by the employer as contributions or loans.
• The plan provides a controlled downside risk protection for Participating Employees.
• Termination not necessarily a trigger for benefit payments.
• Concessional post Ralph CGT provisions apply to profits made on disposal of assets.
• No FBT payable by Employer.
• Fully outsourced administration.