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.