Woodside Employee Shares that vest this October are taxable to most employees. Woodside has not paid any tax on your behalf meaning you are likely to have to pay additional tax when you do your tax return.
Any tax management strategy you employ needs to be implemented by June 30 of the financial year in which they vest.
The share plans are a bonus. But they are a bonus in the form of Woodside shares, not cash. This leaves the question of what you should do with that bonus. Would you buy WPL shares if you had the cash?
Are you ready? To start planning now call us on 08 9274 2888.
How this affects you.
The share plan granted 3 years ago have begun vesting this month. Woodside don’t withhold tax on share plans so in that way it is similar to the Share Plan that vested in 2012.
For over 10 years we have been advising Woodside employees on their share plans. In that time we have seen two major legislative changes, four different styles of plans, years you were given them and years you weren’t.
You have some choices to make and will have similar choices to make for the next 3 years as the subsequent share plans vest.
We can help you find the right strategy.
I’ve completely lost track of what I have, what they are worth and have no idea what the rules are for each parcel!
Does this sound familiar? It is one of the most common comments we hear from Woodside veterans.
We have advised people with some of the following strategies:
- hold on to Woodside shares
- use them to pay off loans
- diversify to reduce risk
- move to trusts or super
We have also developed and managed successful strategies to reduce the tax bills from share plans and increase their ‘take home’ value.
The advice we offer is entirely dependent on what is right for you as an individual. Right now we are outlining to our Woodside clients the options they have to ensure they use this bonus in the most powerful way to generate wealth for their family.
Changes to legislation.
The Government has passed yet another change to the employee share plan legislation. It will reverse some of the 2009 changes, and aims to allow the deferral of taxation on certain share plans. This may mean there is yet another change to the treatment of future share plans.
We can help you get organised and make smart decisions. Call us on 08 9274 2888 or email firstname.lastname@example.org and we can call you.
Certified Financial Planners are licensed to give financial advice. We aren’t accountants but are more than happy to work with your accountant to reduce your tax bill and develop the best outcome for you.
Click on the links below for recent articles you might find interesting and to read more about what we offer. For information on how we like to do business read The BWG Way.
- The Optimisation Plan
- Case Study – The Karratha exit plan
- Stock markets crash and Perth property hits the wall.
- Re-tender your loan to reverse the rate increase.
- Quality investments in troubled times.
- Is it fair to rely on your accountant alone to reduce your tax bill?
Bennett Wealth Group is not an advice firm commissioned by Woodside so the comments in this post are not necessarily the views of Woodside or the various outsourced super, share plan or tax information channels.
Bennett Wealth Group is a Perth based advice firm which just happens to have a high proportion of Woodside people as clients.