Trusts Create Alternative Succession Option

Federal Budget 2023 will create employee ownership trusts to enable employees to share in the success of their work, support participation in business decisions, and allow workers to receive their share of profits. With more than 75 per cent of small business owners planning to retire in the next decade, these trusts can also give business owners an alternative succession option. The budget proposes to introduce tax changes to facilitate the creation of the trusts making selling the business to employees would become a more attractive proposition for owners looking to exit and employee-owned businesses would be able to re-invest more of their profits in growth. These changes would take effect for the 2024 tax year.