Footnotes

Chapter 2 - Structure and operation of employee share schemes

[1]        Australian Employee Ownership Association, Submission 4, p. 1.

[2]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 6, http://www.treasury.gov.au/documents/1559/PDF/consultation_paper.pdf (accessed 15 July 2009).

[3]        Taxation Institute of Australia, Submission 10, p. 2.

[4]        CRA Plan Managers, Submission 8, p. 5.

[5]        See for example Hay Group, Submission 15, p. 3.

[6]        Remuneration Strategies Group, Submission 11, p. 11.

[7]        Hay Group, Submission 15, p. 3; Remuneration Strategies Group, Submission 11, p. 7.

[8]        Deloitte, Submission 30, p. 3.

[9]        Hay Group, Submission 15, pp. 4–5.

[10]      Financial Sector Union, Submission 22, p. 2.

[11]      Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 18.

[12]      European Foundation for the Improvement of Living and Working Conditions, 'Financial participation of employees in the European Union: Much ado about nothing?', Background paper, 2007, p. 20.

[13]      Replicator scheme is one which does not utilise shares but is based on performance rights and paid out as ordinary salary or wages. Remuneration Strategies Group, Submission 11, p. 11.

[14]      Remuneration Strategies Group, Submission 11, pp. 7, 9.

[15]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 24.

[16]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, p. 8.

[17]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 20.

[18]      Brash Solutions, Submission 21, p. 1.

[19]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 19–20.

[20]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 6.

[21]      Employee Ownership Group, 'Frequently asked questions on ESOPs', www.employeeownershipgroup.com.au/default.asp?id=43 (accessed 7 July 2009).

[22]      Financial Sector Union, Submission 22, p. 2.

[23]      Employee Ownership Group, 'Frequently asked questions on ESOPs', www.employeeownershipgroup.com.au/default.asp?id=43 (accessed 7 July 2009).

[24]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 12–14. Duties arise out of the Corporations Act 2001.

[25]      Australian Employee Ownership Association, Submission 4, p. 1.

[26]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, p. 5.

[27]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 6–7.

[28]      Financial Sector Union, Submission 22, p. 2.

[29]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 24.

[30]      Institute of Chartered Accountants, Submission 16, p. 4 and PriceWaterhouseCoopers, Submission 5, p. 2.

[31]      Employee Ownership Group, 'Frequently asked questions on ESOPs', www.employeeownershipgroup.com.au/default.asp?id=43 (accessed 7 July 2009).

[32]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 17–19.

[33]      Mr Rod Masson, Proof Committee Hansard, 27 July 2009, p. 65.

[34]      Ingrid Landau, Richard Mitchell, Ann O'Connell, Ian Ramsay and Shelley Marshall, 'Broad‑based employee share ownership in Australian listed companies: Survey report', April 2009, p. 2.

[35]      Ingrid Landau, Richard Mitchell, Ann O'Connell, Ian Ramsay and Shelley Marshall, 'Broad-based employee share ownership in Australian listed companies: Survey report', April 2009, p. 1.

[36]      Australian Employee Ownership Association, Submission 4, p. 2.

[37]      Employee Ownership Group, 'Frequently asked questions on ESOPs', www.employeeownershipgroup.com.au/default.asp?id=43 (accessed 7 July 2009).

[38]      Australian Employee Ownership Association, Submission 4, p. 1.

[39]      Remuneration Strategies Group, Submission 29, p. 17.

[40]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, pp. 8–9.

[41]      Employee Ownership Group, 'Frequently asked questions on ESOPs', www.employeeownershipgroup.com.au/default.asp?id=43 (accessed 7 July 2009).

[42]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 9.

[43]      Australian Employee Ownership Association, Submission 4, p. 5.

[44]      Australian Employee Ownership Association, Submission 4, p. 5.

[45]      Klaas Woldring, Submission 2, p. 3.

[46]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 3.

[47]      Cited in Jarrod Lenne, Richard Mitchell and Ian Ramsay, Employee Share Ownership Schemes in Australia: A Survey of Key Issues and Themes, Employee Share Ownership Project, University of Melbourne, 2005, p. 15.

[48]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 9.

[49]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 4.

[50]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 5.

[51]      Australian Employee Ownership Association, Submission 4, p. 2.

[52]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 10.

[53]      Ingrid Landau, Richard Mitchell, Ann O'Connell, Ian Ramsay and Shelley Marshall, 'Broad-based employee share ownership in Australian listed companies: Survey report', April 2009, p. 2.

[54]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, pp. 11–12.

[55]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 11.

Chapter 3 - Governance and taxation

[1]        Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 5–6.

[2]        ATO, Employee share schemes—answers to frequently asked questions by employees, http://www.ato.gov.au/print.asp?doc=/content/24703.htm (accessed 7 July 2009).

[3]        The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[4]        Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 9–10.

[5]        Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 8.

[6]        The Hon Wayne Swan MP, Treasurer, 'Better targeting the employee share scheme tax concessions', Media release, 12 May 2009, No. 063.

[7]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 35.

[8]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 6, footnote 1.

[9]        The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[10]      Michael Willcock, Proof Committee Hansard, p. 7.

[11]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 7, footnote 2.

[12]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p.6.

[13]      ATO, Employee share schemes—answers to frequently asked questions by employees, http://www.ato.gov.au/print.asp?doc=/content/24703.htm (accessed 7 July 2009).

[14]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 13.1.

[15]      David Hetherington, 'Employee share ownership and the progressive economic agenda', 2009, p. 13.

[16]      Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 16.

[17]      David Hetherington, 'Employee share ownership and the progressive economic agenda', 2009, p. 13.

[18]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 13.2.

[19]      Remuneration Strategies Group, Submission 11, p. 22; Tax Laws Amendment (Budget Measures) Act 2008, Part 2.

[20]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 13.1.1.

[21]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 14–16, 22.

[22]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 17.

[23]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 17.

[24]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, p. 1.

[25]      Employee Ownership Group, Submission 29, p. 11.

[26]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 2–3.

[27]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 20.

[28]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 1, 4.

[29]      ASIC, Employee share schemes, Regulatory Guide 49, p. 3.

[30]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, p. 4.

[31]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 8–10.

[32]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, p. 11.

[33]      Ingrid Landau and Ian Ramsay, 'Employee share ownership plans in Australia: the corporate law framework', Employee Share Ownership Project, University of Melbourne, March 2007, p. 11.

[34]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 14, 20.

[35]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraphs 24–25, http://www.treasury.gov.au/documents/1559/PDF/consultation_paper.pdf (accessed 15 July 2009).

Chapter 4 - Employee share schemes in Australia and overseas

[1]        House of Representatives Standing Committee on Employment, Education and Workplace Relations, Shared Endeavours—An Inquiry into Employee Share Ownership in Australia, 2000, p. 9.

[2]        Australian Employee Ownership Association, Submission 4, p. 2.

[3]        Klaas Woldring, Submission 2, p. 2.

[4]        David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 8.

[5]        Australian Employee Ownership Association, Submission 4, pp. 3, 6.

[6]        CRA Plan Managers, Submission 8, pp. 2–3.

[7]        See for example House of Representatives Standing Committee on Employment, Education and Workplace Relations, Shared Endeavours—An Inquiry into Employee Share Ownership in Australia (2000), paragraph 2.16; Jarrod Lenne, Richard Mitchell and Ian Ramsay, Employee Share Ownership Schemes in Australia: A Survey of Key Issues and Themes, University of Melbourne, 2005, p. 10.

[8]        Remuneration Strategies Group, Submission 29, p. 20.

[9]        Australian Employee Ownership Association, Submission 4, p. 6.

[10]      John Fauvet, Proof Committee Hansard, 27 July 2009, p. 42.

[11]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 17–18.

[12]      Ingrid Landau, Richard Mitchell, Ann O'Connell and Ian Ramsay, 'An overview of existing data on employee share ownership in Australia', Employee Share Ownership Project, University of Melbourne, March 2007, p. 11.

[13]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 17–18.

[14]      Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, pp. 17–18.

[15]      Ingrid Landau, Richard Mitchell, Ann O'Connell and Ian Ramsay, 'An overview of existing data on employee share ownership in Australia', March 2007, p. 11.

[16]      ASX, 2008 Australian Share Ownership Study, p. 19.

[17]      Ingrid Landau, Richard Mitchell, Ann O'Connell, Ian Ramsay and Shelley Marshall, 'Broad-based employee share ownership in Australian listed companies: Survey report', Employee Share Ownership Project, University of Melbourne, April 2009, pp.1– 2.

[18]      Hay Group, Submission 15, p. 4.

[19]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 9.

[20]      Remuneration Strategies Group, Submission 29, p. 31.

[21]      Ingrid Landau, Richard Mitchell, Ann O'Connell and Ian Ramsay, 'An overview of existing data on employee share ownership in Australia', Employee Share Ownership Project, University of Melbourne, March 2007, pp. 1, 4.

[22]      CRA Plan Managers, Submission 8, pp. 2–3.

[23]      Remuneration Strategies Group, Submission 29, p. 30.

[24]      CRA Plan Managers, Submission 8, p. 7.

[25]      Australian Institute of Company Directors, Submission 12, p. 1.

[26]      Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, pp. 40–41.

[27]      Australian Employee Ownership Association, Submission 4, p. 2.

[28]      Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, pp. 40–41; see also Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 49.

[29]      John Fauvet, Proof Committee Hansard, 27 July 2009, p. 41.

[30]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 20.

[31]      Geoff Price, Proof Committee Hansard, 27 July 2009, p. 79.

[32]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, pp. 20–21.

[33]      Australian Employee Ownership Association, Submission 4, p. 3.

[34]      Ingrid Landau, Richard Mitchell, Ann O'Connell and Ian Ramsay, 'An overview of existing data on employee share ownership in Australia', March 2007, p. 9.

[35]      Ingrid Landau, Richard Mitchell, Ann O'Connell and Ian Ramsay, 'An overview of existing data on employee share ownership in Australia', March 2007, p. 11.

[36]      Geoff Price, Proof Committee Hansard, 27 July 2009, p. 79.

[37]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 4.

[38]      Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 71.

[39]      Sarah Bernhardt, Proof Committee Hansard, 27 July 2009, p. 21.

[40]      Australian Employee Ownership Association, Submission 4, p. 4.

[41]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 16. The six plans were tax-exempt and tax-deferred schemes in Australia, Share Incentive Plan (SIP) and Save as You Earn Scheme (SAYE) in the UK and Employee Share Ownership Plan (ESOP) and 423 Plan in the US.

[42]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, pp. 17–19.

[43]      Michael Willcock, Proof Committee Hansard, 27 July 2009, p. 3.

Chapter 5

[1]        Information is based on the following source unless otherwise indicated: The Hon Wayne Swan MP, Treasurer, 'Better targeting the employee share scheme tax concessions', Media release, 12 May 2009, No. 063.

[2]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraphs 51– 52.

[3]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraphs 34 and 55.

[4]        See for example Remuneration Strategies Group, Submission 11, p. 24.

[5]        Michael Willcock, Proof Committee Hansard, p. 3.

[6]        Treasury, 'Reform of the taxation of employee share schemes', http://www.treasury.gov.au/contentitem.asp?ContentID=1559&NavID=066 (accessed 14 July 2009).

[7]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraphs 64 and 65.

[8]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 6.

[9]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 7.

[10]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 50.

[11]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 61.2.

[12]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 18.

[13]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 110.

[14]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 18.

[15]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 109, 111.

[16]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 73.1.

[17]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, p. 21.

[18]      Treasury, 'Reform of the taxation of employee share schemes', http://www.treasury.gov.au/contentitem.asp?ContentID=1559&NavID=066 (accessed 14 July 2009).

[19]      Treasury, 'Reform of the taxation of employee share schemes', http://www.treasury.gov.au/contentitem.asp?NavId=066&ContentID=1573 (accessed 14 July 2009).

[20]      Michael Willcock, Proof Committee Hansard, p. 5.

[21]      Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraph 35.

[22]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[23]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[24]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Details of further industry consultations on employee share schemes tax reforms', Media release no. 017, 24 July 2009.

[25]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Details of further industry consultations on employee share schemes tax reforms', Media release no. 017, 24 July 2009.

[26]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Minister releases spring sittings program for major tax measures', Media release no. 029, 11 August 2009.

[27]      Productivity Commission, Executive remuneration home page, http://www.pc.gov.au/projects/inquiry/executive-remuneration (accessed 20 July 2009).

[28]      Treasury, Australia's future tax system, http://taxreview.treasury.gov.au/Content/Content.aspx?doc=html/home.htm (accessed 20 July 2009).

[29]      For further details, see Senate Economics Legislation Committee, Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009, https://www.aph.gov.au/Senate/committee/economics_ctte/termintation_payments_09/index.htm (accessed 20 July 2009).

[30]      Hay Group, Submission 15, p. 1.

[31]      Institute of Chartered Accountants, Submission 16, p. 5, and Mr Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, p. 36.

[32]      Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, p. 43.

[33]      Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, p. 37.

[34]      Australian Bankers' Association, Submission 31, p. 3.

[35]      Sarah Bernhardt, Proof Committee Hansard, 27 July 2009, pp. 29–30.

Chapter 6

[1]        Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, pp. 32 and 39.

[2]        Institute of Chartered Accountants, Submission 16, p. 2.

[3]        Corporate Tax Association, Submission 26, p. 1; see also Ernst&Young, Submission 23, p. 1.

[4]        CRA Plan Managers, Submission 8, pp. 10–12.

[5]        Sarah Bernhardt, Proof Committee Hansard, 27 July 2007, p. 31.

[6]        Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 48; also see David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 20.

[7]        Employee Ownership Group, Submission 29, p. 3.

[8]        David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 20.

[9]        Ernst&Young, Submission 23, p. 4.

[10]      Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 27.

[11]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 20.

[12]      Marty Robinson, Proof Committee Hansard, 27 July 2009, p. 16.

[13]      Australian Institute of Company Directors, Submission 12, Attachment 1, p. 2; also see Guerdon Associates, Submission 6, p. 7.

[14]      Guerdon Associates, Submission 6, p. 7; also see Ernst&Young, Submission 23, p. 3; Deloitte, Submission 28, p. 7.

[15]      Guerdon Associates, Submission 6, p. 7.

[16]      Financial Sector Union, Submission 22, p. 4.

[17]      Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 28.

[18]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 19.

[19]      Jarrod Lenne, Richard Mitchell and Ian Ramsay, Employee Share Ownership Schemes in Australia: A Survey of Key Issues and Themes, Employee Share Ownership Project, University of Melbourne, 2005, pp. 23–24.

[20]      Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 26.

[21]      Dwyer Lawyers, Submission 7, p. 1.

[22]      Employee Ownership Group, Submission 29, p. 6.

[23]      Senator Hurley, Proof Committee Hansard, 27 July 2009, p. 73.

[24]      Paul Ellis, Proof Committee Hansard, 27 July 2009, p. 74.

[25]      Ann O'Connell, Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 26.

[26]      Paul Ellis, Proof Committee Hansard, 27 July 2009, p. 71; also see Geoff Price, Proof Committee Hansard, 27 July 2009, p. 83.

[27]      Guerdon Associates, Submission 6, pp. 6–7.

[28]      Baker and McKenzie, Submission 1, p. 2.

[29]      Rio Tinto, Submission 9, p. 2; see also Hay Group, Submission 15, p. 8.

[30]      Institute of Chartered Accountants, Submission 16, p. 3.

[31]      Investment and Financial Services Association, Submission 30, p. 5.

[32]      Mallesons Stephen Jaques, Submission 19, p. 3; Investment and Financial Services Association, Submission 30, p. 5.

[33]      Michael Willcock, Proof Committee Hansard, 27 July 2009, p. 11.

[34]      Associate Professor Ann O'Connell, Proof Committee Hansard, 27 July 2009, pp. 51–52.

[35]      Guerdon Associates, Submission 6, p. 8.

[36]      Taxation Institute of Australia, Submission 10, Attachment 1, p. 5.

[37]      Guerdon Associates, Submission 6, p. 8.

[38]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[39]      Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 48.

[40]      Corporate Tax Association, Submission 26, p. 2; also see Sarah Bernhardt, Proof Committee Hansard, 27 July 2009, pp. 26–27.

[41]      See for example David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 19; Rio Tinto, Submission 9, p. 2; Ernst&Young, Submission 23, p. 3.

[42]      Allens Arthur Robinson, Submission 18, p. 1.

[43]      Australian Institute of Company Directors, Submission 12, p. 1.

[44]      Deloitte, Submission 28, p. 1; see also Allens Arthur Robinson, Submission 18, pp. 1–2.

[45]      Investment and Financial Services Association, Submission 30, p. 3; Fairfax Media, Submission 14, p. 2.

[46]      Investment and Financial Services Association, Submission 30, pp. 3–4; Fairfax Media, Submission 14, p. 2.

[47]      Fairfax Media, Submission 14, p. 3.

[48]      Employee Ownership Group, Submission 29, p. 12.

[49]      Treasury, Insider Trading —Position and Consultation Paper, 2007.

[50]      Investment and Financial Services Association, Submission 30, pp. 5–6; also see Australian Bankers' Association, Submission 31, p. 3.

[51]      Yasser El-Ansary, Proof Committee Hansard, 27 July 2007, p. 36.

[52]      Corporate Tax Association, Submission 26, p. 2.

[53]      See for example Rio Tinto, Submission 9, p. 3.

[54]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 19; see also PriceWaterhouseCoopers, Submission 5, p. 4.

[55]      Mallesons Stephen Jaques, Submission 19, p. 5.

[56]      Remuneration Strategies Group, Submission 11, p. 26; see also Australian Bankers' Association, Submission 31, p. 2.

[57]      Employee Ownership Group, Submission 29, p. 5; Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 68; Institute of Chartered Accountants, Submission 16, p. 4; PriceWaterhouseCoopers, Submission 5, p. 4.

[58]      Corporate Tax Association, Submission 26, p. 2.

[59]      Guerdon Associates, Submission 6, p. 5.

[60]      Ernst&Young, Submission 23, p. 7.

[61]      Mallesons Stephen Jaques, Submission 19, p. 3; Taxation Institute of Australia, Submission 10, p. 2; Investment and Financial Services Association, Submission 30, p. 5.

[62]      Investment and Financial Services Association, Submission 30, p. 5.

[63]      Taxation Institute of Australia, Submission 10, pp. 2–3; see also Investment and Financial Services Association, Submission 30, p. 5.

[64]      Taxation Institute of Australia, Submission 10, pp. 2–3.

[65]      Geoff Price, Proof Committee Hansard, 27 July 2009, p. 80.

[66]      PriceWaterhouseCoopers, Submission 5, p. 4.

[67]      Guerdon Associates, Submission 6, pp. 5–6.

[68]      Guerdon Associates, Submission 6, p. 6.

[69]      Australian Institute of Company Directors, Submission 12, p. 2.

[70]      Australian Institute of Company Directors, Submission 12, p. 2.

[71]      Ernst&Young, Submission 23, p. 7; see also Sarah Bernhardt, Proof Committee Hansard, 27 July 2009, p. 28.

[72]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[73]      PriceWaterhouseCoopers, Submission 5, p. 2.

[74]      Ernst&Young, Submission 23, p. 4.

[75]      Fairfax Media, Submission 14, p. 1.

[76]      Hay Group, Submission 15, p. 1; Ernst&Young, Submission 23, p. 4–5.

[77]      PriceWaterhouseCoopers, Submission 5, p. 3; Ernst&Young, Submission 23, p. 4–5.

[78]      Guerdon Associates, Submission 6, p. 8.

[79]      PriceWaterhouseCoopers, Submission 5, p. 4.

[80]      Institute of Chartered Accountants, Submission 16, p. 4; also see Ernst&Young, Submission 23, p. 4.

[81]      PriceWaterhouseCoopers, Submission 5, p. 2; also see Employee Ownership Group, Submission 29, p. 5.

[82]      PriceWaterhouseCoopers, Submission 5, p. 3.

[83]      Employee Ownership Group, Submission 29, p. 5.

[84]      PriceWaterhouseCoopers, Submission 5, p. 3.

[85]      Geoff Price, Proof Committee Hansard, 27 July 2009, p. 83.

[86]      PriceWaterhouseCoopers, Submission 5, p. 4.

[87]      Australian Bankers' Association, Submission 31, p. 2.

[88]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[89]      The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[90]      John Fauvet, Proof Committee Hansard, 27 July 2009, p. 33.

[91]      Investment and Financial Services Association, Submission 30, p. 4.

[92]      Corporate Tax Association, Submission 26, p. 3.

[93]      Institute of Chartered Accountants, Submission 16, p. 3.

[94]      Investment and Financial Services Association, Submission 30, p. 4; Australian Bankers' Association, Submission 31, p. 2.

[95]      Taxation Institute of Australia, Submission 10, p. 3, see also Marty Robinson, Proof Committee Hansard, 27 July 2009, p. 10.

[96]      Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 10.

[97]      Starfish Ventures, Submission 17, p. 1.

[98]      Sandra Roussel, Proof Committee Hansard, 27 July 2009, p. 14.

[99]      Fairfax Media, Submission 14, p. 1.

[100]    Starfish Ventures, Submission 17, p. 1.

[101]    Guerdon Associates, Submission 6, pp. 2–4.

[102]    Hay Group, Submission 15, p. 1.

[103]    Australian Institute of Company Directors, Submission 31, Attachment 1, pp. 2–3.

[104]    PriceWaterhouseCoopers, Submission 5, p. 4; Australian Institute of Company Directors, Submission 12, Attachment 1, pp. 2–3.

[105]    Deloitte, Submission 28, p. 6.

[106]    Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraphs 24–25, http://www.treasury.gov.au/documents/1559/PDF/consultation_paper.pdf (accessed 15 July 2009).

[107]    Productivity Commission, Executive Remuneration, http://www.pc.gov.au/projects/inquiry/executive-remuneration (accessed 15 July 2009).

[108]    Rio Tinto, Submission 9, pp. 2–3; also see Sarah Bernhardt, Proof Committee Hansard, 27 July 2009, pp. 21–22; Mr Geoff Price, Proof Committee Hansard, 27 July 2009, p. 82; Baker and McKenzie, Submission 1, p. 2.

[109]    Allens Arthur Robinson, Submission 18, p. 4; Baker and McKenzie, Submission 1, p. 2.

[110]    Stephen Consedine, Proof Committee Hansard, 27 July 2009, p. 18.

[111]    Baker and McKenzie, Submission 1, p. 2.

[112]    Investment and Financial Services Association, Submission 30, p. 6.

[113]    Deloitte, Submission 28, p. 6.

[114]    Michael Willcock, Proof Committee Hansard, 27 July 2007, p. 3.

[115]    Taxation Institute of Australia, Submission 3, p. 3.

[116]    Sarah Bernhardt, Proof Committee Hansard, 27 July 2007, p. 26.

[117]    Ann O'Connell, Proof Committee Hansard, 27 July 2007, p. 49; Geoff Price, Proof Committee Hansard, 27 July 2009, p. 82.

[118]    Paul Ellis, Proof Committee Hansard, 27 July 2009, p. 75.

[119]    See for example CRA Plan Managers, Submission 8, p. 15.

[120]    CRA Plan Managers, Submission 8, p. 15.

[121]    See for example Australian Employee Ownership Association, Submission 4, p. 6.

[122]    Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 25.

[123]    Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 25.

[124]    Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 69.

[125]    Ann O'Connell, 'Employee share ownership plans in Australia: The taxation law framework', Research Report, Employee Share Ownership Project, University of Melbourne, March 2007, p. 25.

[126]    Employee Ownership Group, Submission 29, p. 9.

[127]    John Fauvet, Proof Committee Hansard, 27 July 2009, p. 34; also see Employee Ownership Group, Submission 29, p. 7; PriceWaterhouseCoopers, Submission 5, p. 5.

[128]    Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 55.

[129]    Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 72.

[130]    Dwyer Lawyers, Submission 7, p. 2.

[131]    Dwyer Lawyers, Submission 7, p. 2.

[132]    Associate Professor Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 49.

[133]    Employee Ownership Group, Submission 29, p. 7.

[134]    Taxation Institute of Australia, Submission 10, Attachment 1, p. 5..

[135]    Mallesons Stephen Jaques, Submission 19, p. 2.

[136]    Associate Professor Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 55.

[137]    Ernst&Young, Submission 23, p. 5.

[138]    Marty Robinson, Proof Committee Hansard, 27 July 2009, p. 10.

[139]    David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 4.

[140]    David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 18.

[141]    Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 48.

[142]    Allens Arthur Robinson, Submission 18, pp. 1–2; See also David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 19.

[143]    Dwyer Lawyers, Submission 7, p. 2.

[144]    Hay Group, Submission 15, p. 9.

[145]    Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, p. 44 and John Fauvet, Proof Committee Hansard, 27 July 2009, p. 34.

[146]    Christopher Leggett, Proof Committee Hansard, 27 July 2009, pp. 14–15.

[147]    Sandra Roussel, Proof Committee Hansard, 27 July 2009, p. 15.

[148]    Baker and McKenzie, Submission 1, p. 2.

[149]    Mallesons Stephen Jaques, Submission 19, pp. 5–6.

[150]    DLA Phillips Fox, Submisison 27, pp. 1–2.

[151]    Mallesons Stephen Jaques, Submission 19, pp. 5–6; CRA Plan Managers, Submission 8, p. 15.

[152]    Mallesons Stephen Jaques, Submission 19, pp. 5–6.

[153]    Sandra Roussel, Proof Committee Hansard, 27 July 2009, p. 14.

[154]    Baker and McKenzie, Submission 1, p. 2.

[155]    Geoff Price, Proof Committee Hansard, 27 July 2009, p. 81.

[156]    The Hon Senator Nick Sherry, Assistant Treasurer, 'Taxation of Employee Share Schemes', Press release No. 011, 1 July 2009.

[157]    Michael Willcock, Proof Committee Hansard, 27 July 2009, p. 13.

[158]    See for example Proof Committee Hansard, 27 July 2009.

[159]    Geoff Price, Proof Committee Hansard, 27 July 2009, p. 81.

[160]    Paul Ellis, Proof Committee Hansard, 27 July 2009, p. 74; see also Deloitte, Submission 28, p. 10.

[161]    Australian Employee Ownership Association, Submission 4, pp. 2–3; see also David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 20.

[162]    Employee Ownership Group, Submission 29, p. 10.

[163]    Employee Ownership Group, Submission 29, p. 7.

[164]    Employee Ownership Group, Submission 29, p. 8.

[165]    Employee Ownership Group, Submission 29, p. 11.

[166]    Ann O'Connell, Proof Committee Hansard, 27 July 2009, p. 50.

[167]    Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, paragraphs 24–25.

[168]    Taxation Institute of Australia, Submission 10, Attachment 1, p. 3.

[169]    Hay Group, Submission 15, p. 7.

[170]    David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 5.

[171]    Baker and McKenzie, Submission 1, p. 2.

[172]    Taxation Institute of Australia, Submission 10, Attachment 1, p. 4.

[173]    Mallesons Stephen Jaques, Submission 19, pp. 2, 7.

[174]    Australian Information Industry Association, Submission 13, p. 3.

[175]    Corporate Tax Association, Submission 26, p. 2.

[176]    Mallesons Stephen Jaques, Submission 19, p. 2.

[177]    Investment and Financial Services Association, Submission 30, p. 2.

[178]    Ann O'Connell, Proof Committee Hansard, 27 July 2007, p. 56.

[179]    Deloitte, Submisison 28, p. 13.

Labor Senators' Dissenting Report

[1]        Finance Sector Union, Submission 22, p. 4.

[2]        Finance Sector Union, Submission 22, p. 2.

[3]        Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, pp. 8–9.

[4]        Finance Sector Union, Submission 22, pp. 4–5.

[5]        Mr Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 74.

[6]        Mr Geoff Price, Proof Committee Hansard, 27 July 2009, p. 78.

[7]        Mr John Fauvet, Proof Committee Hansard, 27 July 2009, p. 39.

[8]        Institute of Chartered Accountants, Submission 16, p. 2.

[9]        Mr Yasser El-Ansary, Proof Committee Hansard, 27 July 2009, p. 37, 39–40.

[10]      Treasurer Ralph Willis, Press Release No. 169, 1 December 1995.

[11]      Finance Sector Union, Submission 22, p. 2.

[12]      Mr Rod Masson, Proof Committee Hansard, 27 July 2009, pp. 59, 62; also see Finance Sector Union, Submission 22, p. 2.

[13]      Mr Masson, Proof Committee Hansard, 27 July 2009, p. 62.

[14]      Finance Sector Union, Submission 22, p. 1.

[15]      Finance Sector Union, Submission 22, p.5

Appendix 3 - Overseas schemes

[1]        Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 11.

[2]        Dr Klaas Woldring, Submission 2, p. 2.

[3]        Remuneration Strategies Group, Submission 29, p. 28.

[4]        Brash Solutions, Submission 21, p. 1.

[5]        Dr Klaas Woldring, Submission 2, p. 2.

[6]        Remuneration Strategies Group, Submission 29, p. 28.

[7]        The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraph 2, http://www.treasury.gov.au/documents/1559/PDF/consultation_paper.pdf (accessed 15 July 2009).

[8]        The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraph 3.

[9]        Information in this section is from The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 5–8.

[10]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 11.

[11]      Australian Employee Ownership Association, Submission 4, p. 3.

[12]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 14.

[13]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 14.

[14]      Mr Geoff Price, Proof Committee Hansard, 27 July 2009, p. 79.

[15]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 14.

[16]      Mr Martin Morrow, Proof Committee Hansard, 27 July 2009, p. 76; Mr Geoff Price, Proof Committee Hansard, 27 July 2009, p. 79.

[17]      Australian Employee Ownership Association, Submission 4, p. 4.

[18]      Australian Employee Ownership Association, Submission 4, p. 4.

[19]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 15–16.

[20]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 22.

[21]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 13.

[22]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 17–18.

[23]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 13.

[24]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 19 and 21.

[25]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 13.

[26]      Mr Geoff Price, Proof Committee Hansard, 27 July 2009, p. 79.

[27]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 13.

[28]      Mr Geoff Price, Proof Committee Hansard, 27 July 2009, p. 80.

[29]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 14.

[30]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 14.

[31]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraph 24.

[32]      David Hetherington, 'Employee Share Ownership and the Progressive Economic Agenda', Per Capita, 2009, p. 14.

[33]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 23–24.

[34]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 23 and 26.

[35]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 27–31.

[36]      The Treasury, 'Reform of the taxation of employee share schemes', Consultation Paper, Appendix D, paragraphs 32–33.

[37]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 12.

[38]      European Federation of Employee Share Ownership, 'Economic Survey of Employee Ownership in European Countries in 2008', http://www.efesonline.org/Annual%20Economic%20Survey/2008/Presentation.htm (accessed 13 July 2009).

[39]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 31.

[40]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 18.

[41]      European Foundation for the Improvement of Living and Working Conditions, 'Financial participation of employees in the European Union: Much ado about nothing?', Background paper, 2007, p. 27.

[42]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 25.

[43]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 16.

[44]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 13.

[45]      European Federation of Employee Share Ownership, 'Economic Survey of Employee Ownership in European Countries in 2008', http://www.efesonline.org/Annual%20Economic%20Survey/2008/Presentation.htm (accessed 13 July 2009).

[46]      Mr Marc Mathieu, Economic Survey of Employee Ownership in European Countries in 2008, European Federation of Employee Share Ownership, Brussels, May 2009, p. 29.

[47]      Remuneration Strategies Group, Submission 29, p. 29.