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Taxation of Employee Share Ownership Schemes - The New Rules

Published on 16 Mar 2010 | Took place at Stamford Plaza Adelaide, SA

The 2009 Federal Budget announced a significant change to the taxation of employee share ownership schemes. The announcement received significant criticism from tax professionals and employers which resulted in the Federal Government refining the Budget announcement. The proposed provisions have gone through a consulting process, through Parliament and are now final legislation, with effect from 1 July 2009.

This event covered how employee share and option schemes are now taxed.

This event was aimed at people who assist or advise on the design and implementation of employee share schemes for companies. However those who prepare tax returns for employees with employee shares or options also benefitted.

Note: David Williams' paper Employee Share & Option Arrangements – Where are we now? was also delivered at the 9 February 2010 event Current Corporate Tax Issues, held in Sydney. The paper, updated for this event, can be downloaded there.

Individual sessions

Taxation of employee share ownership schemes – The new rules

Author(s):  Craig Whiteman

This presentation covers:

  • key changes
  • the default position or ‘base case'
  • reduction of the ‘base case' ($1,000 limit)
  • deferral:
    • salary sacrifice $5,000 limit
    • real risk of forfeiture
    • genuine disposal restrictions
  • transitional rules
  • other changes
  • reporting requirements
  • planning opportunities.
Materials from this session: