Tag Archives: Australia

New Aussie rules favour share schemes

On 1 July 2015 some important changes were made to the taxation of employee share schemes in Australia which will make employee option schemes more attractive for employees, particularly where the company qualifies as an eligible start-up. For all employee option schemes there is the possibility of deferring the taxing point until exercise of the … Continue Reading

Broader class order relief for employee incentive schemes in Australia

The Australian Securities & Investments Commission’s much anticipated revised class order relief and policy in relation to employee incentive schemes was released on 31 October 2014. This has been achieved by ASIC replacing existing CO 03/184 with two new class orders CO 14/1000 for listed bodies and CO 14/1001 for unlisted bodies. ASIC has also published … Continue Reading

Employee Share/Option Scheme tax rules to apply from 1 July 2015

On 14 October 2014, the Australian government introduced significant changes to the employee share scheme rules to apply to shares or options provided from July 2015. The existing tax rules introduced in 2009 by the former Labor government have been harshly criticised as inhibiting the ability to attract and retain employees by offering ownership interests … Continue Reading

Australian Draft Tax Ruling on Employee Remuneration Trusts

On 5 March 2014 the Australian Taxation Office released a draft ruling relating to the tax treatment of employee remuneration trust arrangements. In the past, the Commissioner of Taxation has issued various private tax rulings on employee remuneration trust arrangements which had allowed income tax deductions for employer contributions to employee remuneration trusts. Many of … Continue Reading

Squire Sanders advises Australian government on reform of employee share scheme tax rules for start-ups

The newly elected Australian Coalition Government has commenced direct consultations with interested stakeholders to review the taxation of employee share schemes for start-up companies, following significant public and political impetus for legal reform in this area. They have stated that they are committed to reforming this area of the law in order to assist start-up … Continue Reading

A warning shot across the bow for the Aurizon Board – the Two Strikes Rule in practice

Last month we brought you an evaluation of the controversial ‘two strikes rule’ (2S Rule) (found here) and how it has affected executive remuneration resolutions at this year’s AGM season in Australia. In our previous blog post we highlighted the number of ways in which the 2S Rule can be utilised by shareholders for reasons … Continue Reading

Australia – changes to the taxation of employee share and option schemes

The newly elected Australian Coalition government has just announced the approach it will take in respect of over 92 taxation issues which had previously been announced but never enacted. However, the government has not formally announced details of its policy regarding the taxation treatment of employee share and option arrangements.  The former Labor government had … Continue Reading

Two Strikes Rule

For three years Australian directors have had to contend with the ‘two strikes’ rule regarding executive remuneration. Under the rule shareholders have the opportunity to spill a company’s board of directors if the resolution to approve the company’s remuneration report receives a ‘no’ vote of 25% or more at two successive annual general meetings (the … Continue Reading