Review of employee share schemes announced
AusBiotech was pleased to learn that the government has announced it will review the policy settings around employee share schemes (ESS).
The 2013 Industry Position Survey showed that 45.9% of companies use share options and 29.5% use the allocation of shares, in addition to cash, to remunerate employees. The tax treatment of share options and shares was repeatedly cited as a barrier to biotechnology companies in competing for highly skilled talent and retention of staff; the industry therefore welcomes a review of the ESS.
By December 2013, the government will consult with stakeholders to determine the most effective measures to address the barriers faced by start-up companies, including:
- developing guidance to reduce the administrative burden (meaning the cost of valuing shares and options) of establishing an ESS;
- adjusting the valuation methodology of options; and
- examining the point at which share options are taxed for start-up companies.
The review will be conducted by the Treasury and DICCSTRE and a discussion paper is due for release in mid-July.
To register your interest to receive a copy of the discussion paper and participate in the consultations, please send your contact details to ess@treasury.gov.au or contact AusBiotech’s Communications Manager, Lorraine Chiroiu (lchiroiu@ausbiotech.org or 03 9828 1414).
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