Australian Government Explores Reform of Employee Ownership

The economics and finance policy committee, composed of members of the governing Liberal/National coalition in the Australian Parliament, met in early March to call for reforms that would encourage more equity compensation and employee ownership in Australia. Tony Smith, a Liberal MP from Victoria, and Christian Porter, the former treasurer of Western Australia, called the meeting of the committee, which develops legislation before it is introduced publicly. Smith told the Australian Financial Review that "We know from world experience that where employees have a stake in the outcome, the businesses are more productive and successful."

Employee Ownership Australia and New Zealand issued a press release applauding the meeting and noting that "Australia lags behind the rest of the developed world in the area of employee share ownership." The EOA calls for a five-point reform of Australian laws, including a focus on employee ownership in both startup companies and in business transitions. The prior Australian government, under the Labor Party, instituted changes in 2009 which a March 3 article in the business publication BRW notes "were blamed for the almost overnight collapse of employee share schemes in Australia."