In a media release issued on 1 July 2009, the Assistant Treasurer, Senator Nick Sherry, announced the release of a Policy Statement setting out the final taxation treatment of shares and rights acquired under employee share schemes, effective from 1 July 2009. The final policy provides further certainty to allow companies to continue to provide share schemes into the future.
The Policy Statement is annexed to the media release.
Under the arrangements outlined on Budget night, all discounts on shares and rights provided under an employee share scheme would be assessed in the income year in which the shares and rights are acquired. The Government then issued a public consultation paper on the new regime, which sought to balance industry concerns with the need to address the acknowledged problems of tax evasion and tax avoidance.
"The Government is announcing today that it has adopted the changes that were proposed in the consultation paper with several final modifications to address some of the concerns raised during the consultation," said the Assistant Treasurer.
As previously announced, the existing law will apply to all shares and rights acquired before 1 July 2009. The Government will introduce legislation implementing the changes during the Spring Sittings of Parliament.
For a copy of the Assistant Treasurer's media release, No 2009/011, 1 July 2009, go here