The Government on Wed 14.1.2015, released draft legislation and draft regs designed to improve the taxation arrangements for Employee Share Schemes.

The proposed amendments would:

  • reverse some of the changes made in 2009 to the point at which rights issued as part of an employee share scheme are taxed for employees of all corporate tax entities;
  • introduce a further tax concession for employees of certain small start-up companies; and
  • allow the ATO to work with industry to develop safe harbour valuation methods, supported by standardised documentation, that will streamline the process of establishing and maintaining an employee share scheme for businesses.

COMMENTS are due by 6 February 2015.

[LTN 8, 14/1/15]