• Government Calls for Submissions on Employee Share Schemes
  • September 2, 2013 | Author: Adam Salter
  • Law Firm: Jones Day - Sydney, New South Wales Office
  • The Australian Government is calling for submissions on Employee Share Schemes (ESS) regarding the current taxation and administrative policy regarding ESS for start-up companies.

    The Discussion Paper published by the Federal Government Treasury is seeking public comment on the impact of ESS on start-up companies, in recognition of the value that start-up companies contribute to economic growth and innovation in Australia. Specifically the Federal Government is seeking public comment on the current ESS system which is marked by implementation and administrative complexities for start-up companies, together with the tax implications for employees.

    The Federal Government is also seeking to amend the ESS taxation policy for start-up companies to make ESS more accessible. The Discussion Paper outlines four proposals for change in relation to ESS for start-up companies, which are not conclusive, in order to gain feedback about the current system and the proposed solutions.