The House of Representatives Standing Committee on Tax and Revenue has today presented its report titled Owning a Share of Your Work: Tax Treatment of Employee Share Schemes.

Media release issue date: Monday, 23 August 2021

The House of Representatives Standing Committee on Tax and Revenue has today presented its report titled Owning a Share of Your Work: Tax Treatment of Employee Share Schemes. Employee Share Schemes are a means by which an employer can offer an employee shares or options in relation to their employment. In its report, the Committee makes 18 recommendations to support the uptake and use of Employee Share Schemes in Australia. The Committee’s overarching recommendation is that Employee Share Schemes be treated as capital for the purposes of taxation, and that a tax liability would arise on the disposal of the assets granted, using the current capital gains tax regime. The Committee’s recommendations also include regulatory relief to reduce disclosure requirements in certain situations, enhanced collection and sharing of data relating to Employee Share Schemes, a public awareness program, and an investigation by the Productivity Commission to identify how Australia’s existing arrangements in this space can be improved. The Committee’s recommendations also include proposed amendments to the Tax and Superannuation Laws Amendment Employee Share Schemes) Act 2015 and the Income Tax Assessment Act 1997, to simplify the complicated and restrictive current tax arrangements for Employee Share Schemes, and support more individuals to access tax concessions for Employee Share Schemes. Committee Chair, Mr Jason Falinski MP, advocates for policy changes in this space - ‘Employee Share Schemes matter because they support new businesses, innovation and start-ups, which are the engine of higher productivity in our country. Higher productivity leads to sustainably higher wages, better products and services, greater competition and more choice. All these outcomes directly impact on the quality of life that hard working Australians enjoy. Productivity is what makes life better, more affordable and easier.’ A full copy of the Committee’s report can be found on the inquiry’s website. Media enquiries Mr Jason Falinski MP Chair of the House of Representatives Standing Committee on Tax and Revenue Jason.Falinski.MP@aph.gov.au (02) 6277 2324 For background information Committee Secretariat 02 6277 4821 TaxRev.Reps@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can, read submissions, find details of upcoming public hearings, and subscribe to receive email updates by clicking on the blue ‘Track Committee’ button on the right side of the page

On Thursday, 16 July 2020, the House of Representatives Committee on Tax and Revenue will be holding its third public hearing for the inquiry into the tax treatment of employee share schemes.

Media release issue date: Wednesday, 8 July 2020

On Thursday, 16 July 2020, the House of Representatives Committee on Tax and Revenue will be holding its third public hearing for the inquiry into the tax treatment of employee share schemes. Chair of the Committee, Mr Jason Falinski MP, stated ‘In previous public hearings, the Committee heard primarily from government, legal and tax experts about the policy and related rules. We are looking forward to hearing from business with first-hand experience of employee share schemes and how the rules work in practice.’ Further information about the inquiry is available on the Committee’s website. Public hearing details Date: Thursday, 16 July 2020 Time: 9.00 am to 11.15 am Location: Committee Room 1R3, Parliament House, Canberra The hearing will be broadcast live at aph.gov.au/live Media inquiries Mr Jason Falinski MP Chair of the House of Representatives Standing Committee on Tax and Revenue Jason.Falinski.MP@aph.gov.au 02 6277 2324 For background information Committee Secretariat 02 6277 4821 TaxRev.Reps@aph.gov.au

The House of Representatives Committee on Tax and Revenue will be holding public hearings for its inquiry into the tax treatment of employee share schemes (ESS).

Media release issue date: Thursday, 28 May 2020

The House of Representatives Committee on Tax and Revenue will be holding public hearings for its inquiry into the tax treatment of employee share schemes (ESS). Chair of the Committee, Mr Jason Falinski MP, says the Committee is interested to hear from a broad cross section of witnesses from government and the private sector about the operation of employee share schemes and the effectiveness of the tax laws surrounding them. ‘In 2015 the Government made a number of changes to improve the taxation treatment and regulation of ESS. This inquiry gives us the opportunity to understand why the use of ESS is still so incredibly low in Australia. It makes little sense. Giving employees, in both startups and established businesses, the opportunity to share in the growth of companies that they are helping build is a cornerstone of innovative economies around the world, like the United States and Israel. This is a unique opportunity for the Parliament to potentially transform the lives of a lot of good people’, said Mr Falinski. Further information about the inquiry is available on the Committee’s website. Upcoming public hearings Date: Thursday, 4 June 2020 Time: 9.45am to 11.45am Location: Committee Room 1R3, Parliament House, Canberra (via video/teleconference)   Date: Friday, 19 June 2020 Time: 9.30am to 3.00pm Location: Committee Room 1R3, Parliament House, Canberra (via video/teleconference)   The hearings will be broadcast live at aph.gov.au/live. Media inquiries Mr Jason Falinski MP Chair of the House of Representatives Standing Committee on Tax and Revenue Jason.Falinski.MP@aph.gov.au (02) 6277 2324 For background information Committee Secretariat 02 6277 4821 TaxRev.Reps@aph.gov.au For more information about this Committee, you can visit its website www.aph.gov.au/taxrev. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right hand corner of the page.

The House of Representatives Committee on Tax and Revenue has commenced an inquiry into the tax treatment of employee share schemes (ESS).

Media release issue date: Monday, 24 February 2020

The House of Representatives Committee on Tax and Revenue has commenced an inquiry into the tax treatment of employee share schemes (ESS). In 2015 the Government made a number of changes aimed at improving the taxation treatment and administrative arrangements for ESS. The Committee will inquire into the effectiveness of the 2015 ESS changes and examine the challenges faced by companies in setting up an ESS arrangement and how taxation treatment affects the structure of current ESS arrangements. Submissions from interested individuals and organisations are invited by Thursday, 19 March 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account. Further information about the inquiry including the terms of reference is available on the Committee’s website. Public hearing details Public hearings for the inquiry will be held in due course and notified through the Committee’s website. Media inquiries Mr Jason Falinski MP Chair of the House of Representatives Standing Committee on Tax and Revenue Jason.Falinski.MP@aph.gov.au (02) 6277 2324 For background information Committee Secretariat 02 6277 4821 TaxRev.Reps@aph.gov.au