Ok, so you don't understand how the income tax system works then.
Just a little tutorial for you
when you are ne employee anything that you receive as part of your remuneration is counted in your assessable income. Therefore, if you have a salary package of $250,000 and in that you get paid 50% in cash and 50% in shares in your employer, then you still have $250,000 of assessable income. You could even get $200,000 in cash and $50,000 in wine as your remuneration package and you still have $250,000 of assessable income.
Yes, making "all staff shareholders because equity makes you rich" is a fair statement and that is why many companies like to incentivize employees that join them early on to stay long term by giving them equity. Also, the staff having equity incentivises them to achieve company goals as they will also benefit from the SP appreciation when those goals are achieved.
It's really not that hard
(20min delay)