Woolworths Group Employee Share Plan enquiries: 1800 111 281
Link’s general contact information:
680 George Street
Sydney NSW 2000
Locked Bag A14
Sydney South NSW 1235
Telephone: 1300 368 664
International Telephone: +61 1300 368 664
Fax: 02 9287 0303
Woolworths Group Limited is pleased to offer team members the opportunity to participate in the Share Purchase Plan (SPP). The SPP makes it easier for team members to become Woolworths Group Limited shareholders and to share in the performance of our Company. Over 20,000 Woolworths Group employees participate in the Plan.
Who is eligible?
Permanent full-time and part-time employees of the Woolworths Group who are Australian tax residents and are 18 years or older on 5 April 2020 were eligible.
How does the SPP work?
The SPP allows you to acquire Woolworths Group Limited shares to the value of either $1,000, $500 or $250 across each financial year. For example, if you have elected to acquire $1,000 worth of shares during 2019, an amount of $20.84 per week or $41.67 per fortnight will be deducted from your pre-tax income from July 2020 to June 2021, and shares will be purchased on your behalf each quarter at the current market price. No brokerage costs are payable by participants. As this is a salary sacrifice arrangement, your taxable income will be reduced which will generally mean you pay less tax than if you had purchased the same number of shares from after-tax income.
In order for shares issued under the SPP to qualify for tax exemption, the shares are held under a three year restriction during which time they cannot be traded. Tax legislation specifies that the minimum restriction period is three years from the allocation date. Shares acquired under the SPP can be transferred to you from the third anniversary of their allocation to you.
As with any financial decision, before you decide to participate in the SPP, you need to consider your personal circumstances. We encourage you to seek independent financial advice before deciding to take up the invitation. A copy of the SPP Booklet will be published on the Offer website during the Offer period and should be read thoroughly.
The Plan Rules and Trust Deed are attached.
The Better Together Share Award
Woolworths Group Limited offered team members the opportunity to receive shares as a Thank You for their contribution to Woolworths Group's response to the extraordinary events of F20 under the Better Together Share Award.
How does the Better Together Share Award work?
Eligible full-time permanent team members received an award of Shares up to a maximum value of $750, rounded down to the nearest whole number of Shares. Part-time team members received a pro-rata award based on their weekly/fortnightly or monthly contracted hours as a proportion of Full-Time Equivalent hours as at 29 February 2020. The minimum award was up to $150, also rounded down to the nearest whole number of Shares
In Australia, the shares are tax-exempt if your adjusted taxable income is below $180,000.
In New Zealand, in providing the award, the Woolworths Group has also covered the tax liability that would otherwise arise.
In order for shares issued under the Better Together Share Award to qualify for tax exemption in Australia, the shares are held under a three-year restriction during which time they cannot be traded (note: this restriction was also applied to the New Zealand participants). Shares acquired under the Better Together Share Award can be transferred to participants from the third anniversary of their allocation.
Reference documents for the Better Together Share Award include:
The Employee Share Plan (ESP) was established in 1993 when Woolworths Group Limited shares were first made available as a result of the Initial Public Offering (IPO). Woolworths provided to eligible employees a ten year interest free loan. These shares were held in the name of the Trustee, Woolworths Custodian Pty Limited on behalf of the employee.
The Employee Share Issue Plan (ESIP) was established in 1999 as part of Woolworths 75th Anniversary celebrations. The final issue of shares under the ESIP was made to employees in 2004 and all shares issued are now Ordinary fully paid shares.