Financial
Roadmap
A clear, personalised path to your financial goals.
21 November, 2023
Your piece of the pie: a deep dive into employee share schemes
First Financial Team
Your paycheque is more than a transaction. It’s a key to financial autonomy and freedom. With employee share schemes, you get an additional slice of the financial pie. And turning that slice into a substantial asset is not just a possibility—it’s within reach.
In Australia, employee share schemes have found a place in modern business practices, offering an effective way to cultivate employee loyalty and acknowledge hard work. A widely adopted, popular method, they play a significant role in how some businesses engage and incentivise their workforce. However, it’s important to understand how they can impact your overall financial situation. At First Financial, we can help clients navigate all areas of the pathway to wealth, including employee share schemes.
Employee share scheme (ESS) basics
Corporations worldwide utilise ESSs to boost workplace morale, attract talent, encourage retention and motivate employees to give their best at work because having a financial interest in the company leads to a vested interest in its success.
Your employer will design an ESS in adherence to Australian tax laws. Typically, you will receive all details, including an outline of your options and the associated consequences.
You may also have a scheme from your employer where you can voluntarily purchase shares in the company you work for, often at a discount to the market price.
How an ESS enhances wealth building
Participating in an employee share scheme offers employees a spectrum of benefits that provide a direct route to financial growth. Beyond the monetary gains, your mindset should shift from an employee to an owner, instilling a deeper commitment and contributing to heightened job satisfaction and loyalty.
Having an investment strategy is a key element in building wealth, and an employee share scheme can be a valuable asset within your portfolio. The potential for share growth over time can significantly contribute to savings, retirement planning and long-term prosperity.
If entering an ESS is your first investment, this is a practical chance to learn the nuances of investing and explore diversification strategies. While it enhances financial literacy, remember that seeking advice from your financial adviser is key. They can help you make informed decisions that maximise ESS benefits and set the stage for future investments.
Cons and challenges
Navigating an ESS can come with its share of challenges and limitations. From restrictions on the timing of buying and selling shares to performance targets and potentially having obligations to give back or sell shares upon leaving the company, it’s not all straightforward.
Then there’s market volatility. Like any other investment, you can incur losses if the company’s value plummets or if it goes out of business. Once again, this emphasises the importance of consulting a financial adviser before making investment decisions.
Tax implications
While receiving an ESS is typically extremely beneficial, there are tax implications. One of our Principals, James Wrigley, says: “It’s crucial to anticipate future tax implications from the outset. When the shares vest, you may face a tax bill, which some people are well-prepared to cover with available cash. If not, then selling a portion of the shares is an option.
You also need to consider capital gains tax (CGT) liabilities because if you sell your shares when they vest, there could be a gain. There is a small, typical, 30-day window after vesting when you can sell shares without CGT liability, but you will still need to pay income tax. After this period, both CGT and income tax apply.”
Talk to the financial planning experts
If you receive an invitation to join an employee share scheme, you should first ask some important questions. At First Financial, we can walk you through the benefits and challenges so you can make an informed decision that will enhance your financial future.
We believe everyone can build wealth using a systematic, structured approach tailored to their circumstances and goals.
To learn more about employee share schemes, investment management or retirement planning, speak with a member of our friendly team today.
Read more financial planning articles.
YOUR FINANCIAL JOUNEY
Building your financial future
Every client journey begins with a conversation. We look closely at where you are now, what matters to you, and what’s possible. Then we structure our advice to match.
Financial
Tax
Efficiency
Proactive strategies to maximise your tax savings.
Personalised
Investing
Tailored plans aligned with your goals and risk profile.
Ongoing
Support
Regular guidance to keep your plan on track.
CLIENT STORY
Graeme and Craig
Life Stage:
Retired and semi-retired
Background:
Referred by friends helped through aged care, Craig sought secure financial guidance after inheriting funds.
- Invest inheritance securely without high risk
- Maintain a modest lifestyle with confidence
- Building trust for someone new to advice
- Accessible, personalised advice
- Provided a low-risk strategy with regular income
- Reassured with steady, market-aware updates
- Established trust through responsiveness and warmth
- Delivered calm, expert support through all transitions
“We feel very secure with First Financial, the income just comes in, and we know everything is being looked after. It’s not just safe, it’s smart. We’ve recommended them to others because we genuinely believe in the team.”
CLIENT STORY
Jan
Life Stage:
Retired
Background:
Jan's husband managed the finances until entering aged care. Jan gradually stepped into the financial picture with First Financial’s support.
- Needed financial guidance after business sale
- Lacked experience managing complex finances
- Sought consistent income and long-term structure
- Wanted a familiar, reliable relationship
- Provided long-term support through several transitions
- Helped structure income reliably for retirement
- Empowered Jan through education and reassurance
- Delivered calm advice through both grief and growth
“The money just comes in. I don’t have to think about it. And I know they’re always there. They’ve always been there in the background, just quietly making things work.”
CLIENT STORY
Lyn
Life Stage:
Retired widow
Background:
Lyn stepped into financial management for the first time after her husband's passing. With patience and care, First Financial supported her through grief, learning, and empowerment.
- Had never managed finances before
- Was overwhelmed after her husband’s passing
- Needed plain-English explanations and patience
- Sought emotional support and practical clarity
- Offered caring, respectful advice at her pace
- Rebuilt confidence with diagrams, stories, and reassurance
- Supported gradual decision-making around retirement
- Remained a trusted constant through major transitions
“After my husband passed, I was completely unsure where to start. First Financial gave me the space to learn, to ask questions, to grow confident. They drew a diagram that I still have. And now, I sleep well at night knowing I’ve got someone in my corner.”
CLIENT STORY
Larry and Virginia
Life Stage:
Newly retired
Background:
As retirement neared, Larry and Virginia were ready to enjoy travel, family, and freedom, without uncertainty. A friend recommended First Financial, and from the first meeting, they had a clear plan, a safety net, and people they trusted.
- Wanted to travel and enjoy retirement without second-guessing finances
- Needed a structured income plan with buffers for the unexpected
- Valued guidance that felt honest and human, not overcomplicated
- Needed people they could call and count on
- Created a reliable income stream with a set-aside safety net for the unexpected
- Gave them the freedom to travel and spend meaningfully with family
- Kept advice simple, thoughtful, and tailored to what mattered to them
- Built a lasting partnership based on trust
“We’ve travelled the world, Europe, Sri Lanka, Vietnam, without once stressing about the money. They made everything feel simple and gave us the confidence to live well. We feel secure because we know exactly where we stand, and that peace of mind means everything.”
CLIENT STORY
John
Life Stage:
Retired business owner
Background:
After decades of running a successful pharmacy, John sought financial guidance to simplify decision-making and support long-term planning.
- Navigated the sale of a long-held business
- Wanted simple, honest advice after burnout
- Needed a hands-on adviser he could talk to
- Desired financial guidance aligned with lifestyle goals
- Crafted a strategy that supports relaxed, post-work life
- Offered approachable, plain-English advice
- Maintained an ongoing, trustworthy relationship
- Provided flexibility with investments and cash flow
“I feel genuinely supported by First Financial. I can ask anything, and there’s no pressure, just clear advice and real care. The money’s growing, I’m not stressed about it, and I feel completely at ease for the first time. I don’t miss work, but I’d miss the support I get from First Financial.”
CLIENT STORY
Tim and Adam
Life Stage:
Early retirement and working professional
Background:
When Tim received an overseas medical settlement, he and Adam had just 14 days left in a 90-day window. They needed clear guidance, fast. A referral led them to First Financial.
- Only two weeks left to meet urgent legal and financial deadlines
- Wanted to preserve capital while setting up income for the future
- Needed a plan that supported both retirement and ongoing work
- Hoped to find advice that felt personal, not transactional
- Managed every moving piece, from legal documents to super rollovers
- Designed a strategy that supported both Tim’s retirement and Adam’s career
- Offered clear guidance with steady follow-through, with no stress or pressure
- Built in ethical investing and flexibility, without sacrificing performance
“We’re in totally different life stages, but First Financial built a strategy that supports us both. From urgent legal steps to ethical investing, they handled every detail with calm, care, and real expertise. It’s financial freedom without compromise, and we couldn’t have done it without them.”
Meet our advisers
