Tax product promoters are commonly suggesting executive incentive plans to allow pre-tax diversion of income to savings and investment options. These products are usually modelled on phantom share plans, and are under heavy scrutiny from the Australian Taxation Office. They are generally covered under the term Employee Benefits Scheme, in recent coverage of the tax rulings issued at by the ATO.

Care must be taken to ensure that any package inclusion of such a product comes with a relevant and specific tax ruling that has been obtained on your behalf, and is issued by the ATO in your name.

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