Employee Share Scheme tax amendments Bill passed by House of Representatives

The Tax and Superannuation Laws Amendment (Employee Share Schemes) Bill 2015 that will implement the government’s proposed amendments to the employee share scheme tax rules contained in Division 83A of the Income Tax Assessment Act 1997 passed the third reading stage in the House of Representatives on 27 May 2015, without any amendments.

The Bill will now go to the Senate, noting that the Bill was referred to the Senate Economics Legislation Committee on 13 May, for inquiry and report by 16 June. Public submissions to the Committee can be made to 5 June 2015 at Senate Standing Committees on Economics, 
PO Box 6100
 Parliament House,
 Canberra, ACT 2600

, Phone: +61 2 6277 3540
, Fax: +61 2 6277 5719
 and email economics.sen@aph.gov.au.

You may consider another attempt to have cessation of employment removed as a taxing point for unvested equity. Good luck! In the past six years Guerdon Associates have raised this in six formal submissions, as well as in discussions with various government ministers and parliamentary committees. While the changes in this tax bill reflect many of the changes we and many others have considered essential for Australia to be globally more competitive, improving governance through aligning taxation with post employment vesting has not yet got the traction in Treasury and with politicians it deserves.

The amendments are scheduled to commence from 1 July 2015. We do not anticipate any problems with the Bill passing the Senate, given that the Greens and the ALP supported the Bill in the House of Representatives.

The text of the Bill and the Explanatory Memorandum are available HERE.

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