Woodside Employee Shares that vest this November 30th are taxable to most employees and 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 minimisation strategy you employ needs to take be implemented by June 30, 2015.
We see the share plan as a bonus but in the form of Woodside shares rather than cash. You need to decide what you should do with that bonus. Would you buy WPL shares if you had the cash?
If you’re ready to start planning now – call us on 08 9274 2888.
What you need to know
The share plan granted 3 years ago vests on the 30th of November 2014 and Woodside don’t withhold tax on share plans so in that way it is similar to the Share Plan that vested in 2012.
You have some choices to make and will have similar choices to make for the next 3 years as the subsequent share plans vest.
A bit about Bennett Wealth Group
The most common comment we hear from Woodside veterans is “ I’ve completely lost track of what I have, what they are worth and have know idea what the rules are for each parcel”
In the 10 + years we’ve been advising Woodside employees on their share plans we have seen two major legislative changes, 4 different styles of plans and years you were given them and years you weren’t.
Over this time we have advised people to hold them, use them to pay off loans, diversify to reduce risk, move to trusts or super, protect using derivatives at $57 pre GFC – all dependent on what was right for that individual. We have also developed and managed strategies to reduce the tax bills from these share plans which certainly increases their “take home” value.
We are outlining to our Woodside clients right now the options they have to ensure they use this bonus in the most powerful way to generate wealth for their family.
How can we help you get organised and make smart decisions?
- Call us on 08 9274 2888 or email queries@bennettwealth.com.au so we can call you.
- For more reading on how we like to do business you can read The BWG Way.
- We aren’t accountants but we are Certified Financial Planners who are licensed to give financial advice so we will work with your accountant for the best outcome for you. See our recent blog on “Is it fair to rely on your accountant alone to reduce your tax bill”
And Guess what! – The Government is drafting changes to the Employee share plan legislation which will reverse some of the 2009 changes and this is expected to be in place from the 1st of July 2015 if it can pass through our wonderful senate.
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.
BWG is a Perth-based, advisor owned advice firm which just happens to have a high proportion of Woodside people as clients.
If you’re ready to start planning now – call us on 08 9274 2888.