Employee ownership changes imminent

24 September 2014

The Abbott government is close to finalising new employee share-ownership rules that will replicate key aspects of a British regime that seeks to encourage small companies and start-ups, with employers to gain more scope to issue shares and stock ­options to their workers under an imminent federal reform.

Angela Perry, Chair of Employee Ownership Australia and New Zealand (EOANZ), said to The Australian:

“If the 2009 changes are reversed, it would immediately lead to a significant reduction in the complexity and cost of implementing employee share plans, cut red tape in the small business sector and provide instant financial help to the growth and start-up sectors.”

“If the UK EMI-style option is adopted, this would indicate that the government is truly committed to innovation and growth.”

The changes come as Liberal MP Tony Smith calls for reforms to share ownership to enable a “new age of enterprise” using stock options to create incentives for workers in a column for the Australian,  which can be read on the EOANZ website: World’s Best Employee Share Ownership Policy is the Key to Competitiveness, 16 September