The Tax and Superannuation Laws Amendment (Employee Share Schemes) Bill 2015 was introduced in the House of Reps [on Wed 25.3.2015]. The Bill proposes to amend the ITAA 1997 to improve the taxation of employee share schemes (ESSs) by:

  • reversing some of the changes made in 2009 to the taxing point for rights for employees of all corporate tax entities;
  • introducing a further taxation concession for employees of certain small start-up companies; and
  • supporting the ATO to work with industry to develop and approve safe harbour valuation methods and standardised documentation that will streamline the process of establishing and maintaining an ESS.

The Minister for Small Business, Bruce Billson, said the proposed amendments “will help stimulate the growth of high technology start-ups in Australia by making Australia a more attractive destination for innovative companies seeking to commercialise their ideas domestically”.

DATE OF EFFECT: proposes to generally apply to ESS interests acquired on or after 1 July 2015.

[LTN 57, 25/3/15] [IT 25/3/15]