Shares & option plans still on hold

As widely reported in the media, Australian employee share and option plans have been stalled this month by tax changes proposed in the Budget. After widespread criticism, the Government announced last Sunday that it would consult with industry to ameliorate the proposals, and revisions are expected by Friday, 5 June 2009. So far though, the start date for the changes remains 12 May 2009 and accordingly there is still significant uncertainty. But there is also potential opportunity in this review, because it has elevated employee share and option plan taxation to the Parliament’s legislation agenda. It is therefore an opportunity to address problems such as taxing shares on cessation of employment.  For our full Tax Brief - click here