The Business Council of Australia welcomes the release today of the federal government’s revised policy on the tax treatment of employee share plans.

“Based on advice received by the BCA, most employee share plans should remain workable under the arrangements announced today,” Deputy Chief Executive, Melinda Cilento, said.

“Today’s announcement demonstrates the government’s ongoing commitment to supporting employee share plans,” Ms Cilento said.

“These plans play an important role in aligning the interests of employees and employers and contribute to higher workplace productivity.

“The revised policy goes a long way to addressing the concerns raised by business in response to the budget announcement.

“The BCA considers that the new reporting requirements are an appropriate way of dealing with tax compliance concerns raised by the government.

“The BCA appreciates the timeliness of the government’s revised policy response and its efforts to consult with business. We look forward to working with the government to ensure that the policy intent is well reflected in the final legislation.

“This is a complex area and the legislation’s final effect will depend on careful drafting,” she said.