Employee share schemes (ESS) gives employees shares in the company they work for, or the opportunity to buy shares in the company. Empployees generally pay for the shares through a loan from their employer, through salary sacrifice, an up[front payment, from employee bonuses, or by using the dividends received on the shares. An employee share plan trust is the most common entity used to establish an ESS.

The benefits of establishing an ESS include:

• Attract, retain and motivate staff as they align employees' interests with shareholders' interests.
• Employees can benefit financially if the company performs well.
• Existing owners can sell out to employees as motivated buyers.

We have put together a list of majority of grants and funding avilable to business, including sole traders.

• Boosting cash flows for employers: Australian Government Cash payments of up to $100k for SME's, with payments received through ATO upon lodgment of BAS.
• Small Business Support Fund: Victorian Government Grant for up to $10,000 to use towards business running costs, including salaries, utilities, and rent. Eligible businesses must have been highly impacted, employ staff, have a turnover of more than $75,000 and a payroll of less than $650,000.
• JobKeeper/ Salary subsidy: Australian Government Job Keeper Payment of $1500 per employee per fornight for up to 6 months for COVID-19 affgected businesses, not for profits, charities and sole traders.
• Apprentices: Financial reimbursement of up to $21,000 per eligible apprentices and trainees.
• PAYG refunds: All businesses under $50 million in turnover will be eligible for PAYG refunds of up to $100,000 if they have employees. These refunds are based upon a 100% remittance of PAYGW withheld from the employee's salaries. There is a minimum refund of $20,000.

Personal Services Income (PSI) is income produced mainly from an individual's skills or efforts. It's income that has the characteristics of employment income. For PSI income, the only deducttions allowed against that income are expenses ane mployee would be entitled to deduct. If the personal services business (PSB) tests are passed, then taxpayers gain the follwing benefits:

• You are entitled to deduct a more extensive range of business expenses from the income
• Can employ family members and pay them wages adn superannuation..

The Federal Government have just announced a $130billion Job Keeper subsidy to keep employees in work.

Key Points:

• A flat $1,500 per employee per fornight payment to eligible businesses
• Payment will be made to your nominated bank account
• Will last for six months
• First payment to businesses in May, however backdated to 30th March onward.