Date issued: 2 July 2009
The Australian Government's revised policy on the tax treatment of shares and rights under employee share schemes is a welcome step, CPA Australia has said.
CPA Australia senior tax counsel Garry Addison said the policy revamp struck the right balance.
'The government's policy position strikes a better balance between ensuring proper compliance and maintaining incentives to reward performance,' he said.
'The revised policy allows for the deferral of tax on shares or options subject to very clear proof that there is a real risk of forfeiture. This ties deferral more closely to performance
'This was a key issue we raised in our response to the government's consultation paper. There is significant evidence that aligning the interest of employees and shareholders is in the public interest since this leads to increased productivity.'
Mr Addison said that the new reporting requirements should effectively address the compliance concerns previously raised by the government.
'We welcome the government's prompt resolution of this matter including the continuing use of share ownership plans to appropriately align the interests of business owners and employees,' he said.
Mr Addison is available for media interviews.