Australia Continues EOT Progress Supported by eoa International Ambassador

eoa International Ambassador Graeme Nuttall OBE has been in Australia advocating and raising awareness for the employee ownership trust model he helped to popularise in the UK.

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Despite significant advocacy efforts and the growing adoption of employee ownership trusts (EOT) across many common law jurisdictions, Australia has yet to fully embrace the power of the EOT.

As part of his continuing global efforts to raise awareness for the EOT, share his knowledge, and help a variety of economies adopt the model, our International Ambassador Graeme Nuttall has been in Australia.

As an ambassador of our colleagues Employee Ownership Australia, Graeme has been working with the organisation to secure a greater foothold for the EOT.

Hard Fought Progress

‘The Nuttall Report’, which helped lay a bedrock for the EOT to be introduced into UK law in 2014, has been instrumental in highlighting the benefits of EO and the key role of EOTs in fostering inclusive and sustainable business practices and enhancing business resilience in Australia.

However, according to Employee Ownership Australia, progress has been slower than anticipated. 

Although there’s a strong desire among businesses and employees for the adoption of EOTs, the organisation said the legislative and Australian Taxation Office (ATO) responses have not been as “robust as needed to facilitate widespread implementation.”

Lending a Hand

Throughout November and into early December 2024, Graeme visited Australia to speaker to companies, business experts, and policymakers about how to develop EO in the country. 

Despite lagging behind the UK, USA, Canada, and other European countries in its adoption of EO, many company owners across Australia are keen to develop a succession plan that protects their company and employees into the future. 

Since its introduction in the UK, almost 2,000 businesses have transitioned to employee ownership using the EOT model. Moreover, the future of the model was recently secured by the Labour government.

“The main reason why so many new EOTs are created each month in the UK is the EOT’s success as a succession solution for private company owners,” says Graeme.

“Selling to the trustee of an EOT avoids sharing trade secrets with competitors and gives control over timing.

“It also secures legacy, independence, and ethos at the same time as rewarding and incentivising those who make a company successful, its employees. 

“These are values that apply internationally, and I look forward to seeing the widespread adoption of the EOT business model in Australia.” 

The EOT model has been adapted for the Australian legislative and tax environment under the guidance of Graeme and Andrew Clements, a legal consultant at KWM and Chair of Employee Ownership Australia. 

Stay up to date with our international activity over on our dedicated page.