As part of A Plan for Australian Jobs: The Australian Government's Industry and Innovation Statement, the Government announced that it would explore options around the impact of employee share schemes (ESSs) on Australian start-ups.
On 12 June 2013, the Australian Government released Advancing Australia as a Digital Economy: An Update to the National Digital Economy Strategy, which recognised that more could be done to support Australian start-ups by reducing the cost and complexity of administering ESSs. The Government announced that it would review the policy settings around ESSs.
The Government announced that it would consult with stakeholders to determine the most effective measures to address the barriers faced by start‑up companies, including issues around:
- 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 undertaken by Treasury, the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) and the Department of Broadband, Communications and the Digital Economy (DBCDE).
The Review will report back to Government by December 2013.
The discussion paper Employee Share Schemes and Start-up Companies: Administrative and Taxation Arrangements outlines the current arrangements and possible options for changes to the ESS system.
Making a Submission
Interested parties are invited to comment on the discussion paper.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
Closing date for submissions: To Be Announced
The Government, by convention, assumed a caretaker role on 5 August 2013 prior to the election and this will continue until the election result is known or, in the event of a change of government, when the new government is appointed.
Submissions will continue to be accepted, however, the closing date for submissions will be determined once the election result is known or, in the event of a change of government, when the new government is appointed.
Address written submissions to:
Please see the discussion paper for postal addresses
For enquiries please call Michelle Dowdell (02) 6263 3071 or Justin Hill (The Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education) (02) 6213 7695.