The Australian Information Industry Association has welcomed reform of the Employee Share Option Plan arrangements in the Federal Government’s upcoming National Industry Investment and Competitiveness Agenda.
The government is close to finalising new rules regarding employee share options that will mimic key aspects of the UK regime that encourages startups.
AIIA chief executive, Suzanne Campbell, said the engine room of innovation in Australia, the start-up industry, had been hampered by regressive, inequitable tax rules since amendments to the Income Tax Assessment Act in 2009.
"AIIA is supportive of the Government delivering much needed reform of ESOPs which are long overdue, having been promised by the Government over 12 months ago," she said.
“AIIA encourages the Government to implement a scheme that supports all businesses, irrespective of size, so that emerging, innovative businesses may remain in this country and be successful."
She said Australia could not afford to continue to penalise talent and hamper the success of our start-ups and entrepreneurs.
"Revising ESOPs will allow these businesses to attract, retain and reward employees for sharing the risk that comes with being innovative. We need to keep smart people, smart business and smart ideas in Australia if we are to be competitive in the global market," she said.
“This news is particularly significant to the technology sector, whose innovations underpin all Australian industries, and contribute to a more productive and competitive nation by driving innovation, productivity and competitiveness.” said Ms. Campbell.
