Australia Details Proposed Changes in Employee Share Tax Rules

The Australian government has provided details on new legislation to encourage companies to offer discounted share plans to employees. To qualify, companies must make the plan available to at least 75% of their employees. Employees can defer taxation on up to $1,000 per year of current benefit from a discount on shares or share rights (such as options) they purchase for up to 15 years or the actual point of share exercise, if sooner (it is currently 7 years or the point at which the shares or rights fist become exercisable, whether exercised or not). There are some additional tax concessions for start-up firms. Details on the new law can be found at this link.