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PPT Overview

By , February 20, 2018

Over the last 15 years, we have been using a proprietary Employee Share Ownership Plan structure designed specifically as a Business Succession and Exit Planning tool for Australian SMEs. Our structure is called a Peak Performance Trust or PPT, and the first trust we implemented for a real estate business in 2006 is still operating.

The Peak Performance Trust is an employee share trust as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA) and subsection 130-85(4), and is a special unit trust whose operation is governed by a trust deed. Employees are granted units based on predetermined qualification rules and a profit share contribution based on an agreed formula is made to allow the trust to acquire shares in the employer company. The plan is an employee share scheme within the meaning of subsection 83A-10-(1) of the ITAA. The plan also includes some specific criteria to protect the business, the founders and the employees and ensure a win-win-win outcome for all involved.

Employee Share Schemes (ESS) – Their design and the taxation implications is a specific area of expertise for our CEO and Founder, Craig West, who is currently completing a Doctor of Business Administration research thesis on using Employee Share Ownership Plans as a Business Succession and Exit Planning tool for Australian SMEs.

The taxation of Employee Share Ownership Plans is often confused by advisers and can be complicated. To review the technical aspects of the Peak performance Trust including extracts from the public Private Binding Rulings we obtain for clients, download a copy of our PPT overview and technical guide.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.

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