2009

Employee Share Schemes - The State of Play

Source: Victoria

Published Date: 15 Jul 2009

 
As part of the 2009/10 Federal Budget, it was announced that tax will be payable on the grant of all "qualifying' shares and rights to acquire shares under employee share schemes which are acquired after 7.30pm on 12 May 2009. Further, it was announced that the $1,000 tax exemption would only apply to taxpayers with an adjusted taxable income less than $60,000.

Only 12 days later, in response to significant community concerns about the unexpected and broad ranging budget announcement, a joint media release was issued from the Treasurer and the Assistant Treasurer. That release indicated that the Government proposed to undertake a consultation process on the budget measures dealing with employee share schemes and that the consultation process would begin with the release of a policy options paper before mid June 2009.

Equity based remuneration will be significantly impacted if the Government's proposal proceeds in the form of the budget announcement. Even if the Government decides, as a result of the consultation process, to refine or better target its measures, there are still likely to be changes required to the way some employee equity offers are made in Australia.

This event outlined the current state of play on employee share schemes.

Taxation of employee share schemes - The current state of play

Author(s): Sarah Bernhardt

Details

  • Published On:15 Jul 2009
  • Took place at:RACV Club, Melbourne

The material is copyright. Apart any fair dealing for the purpose of private study,

research critisism or review, as permitted under the copyright Act, no part may be rerpoduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

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