Taxation of Employee Share Schemes: Government coached to a passing grade

02 July 2009

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The Assistant Treasurer issued a press release and policy statement on 1 July setting out the “final taxation treatment” of shares and rights acquired under employee share schemes.

This follows on from the measures announced in the Budget on 12 May and the Treasury Consultation Paper of 5 June.

In arriving at the final tax treatment, the Government has, to its credit, taken on board the strong private sector reaction to the original proposals.

The final treatment still represents a significant departure from the old law but should now prove workable such that most schemes may continue to operate subject to relatively minor changes.

The Government aims to pass the legislation in the Spring sittings of Parliament. The legislation will apply to shares and rights acquired after 30 June 2009.

For a full version of this document, please download the attached PDF using the link on the right.

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