01 August 2014
The Australian Government is set to revoke legislation implemented in 2009 that has had an effect on the takeup of employee ownership schemes. The Employee Ownership Association Australia and New Zealand (EOANZ) has been making the case throughout the year and earlier to see the 2009 legislation re-examined.
Reported today in the Australian Financial Review and Business Review Weekly, the Employee Ownership Association said the changes would cost little to implement and could possibly add to tax revenue:
“The key thing for start ups is the opportunity to use options to attract and retain talent,” Ms Perry said.
“For small to medium businesses, it’s a mechanism to engage staff and allow employees to become part-owners.”
The group estimates changes to the rules could boost the economy by $1.43 billion over a decade. In the short term, the government could collect an extra $200 million a year tax revenue from extra employee-driven investment.
The article has appeared in Business Review Weekly and the Australian Financial Review, 1 August.