Employee Stock Ownership Plan

Under Division 13A of the Income Tax Assessment Act 1936, a company can establish an ESOP to invite eligible employees to purchase company shares through a tax effective salary sacrifice contribution plan up to a maximum of $1000. Employee Stock Ownership Plan (ESOP). An ESOP is a defined contribution employee benefit plan that allows employees to become owners of stock in the company. An ESOP is a type of profit sharing plan that invests primarily in the stock of the sponsoring employer and provides for benefit distributions. An employee stock ownership plan (ESOP) is a way in which employees of a company can own a share of the company they are employed by. Learn more about purchase plans, 401(k) plans, employee stock ownership (ESOP) plans and others.