Human Capital services - Ernst & Young - Australia

The draft legislation on tax rules for employee share plans largely reflects the positions outlined in the Government's 1 July Policy Statement and the subsequent exposure draft. However, it also includes a few unexpected new measures. In our HR and tax alert (pdf, 98.6kb), we discuss the key points to note and actions for employers that operate employee share plans.

On 14 August 2009, the Australian government released an exposure draft of legislation on the taxation of employee share plans. The new rules will apply to grants made on or after 1 July 2009. Our HR and tax alert (pdf, 120kb) outlines the aspects of the rules that have been confirmed within the exposure draft, as well as questions that remain unanswered.

The Australian Federal Minister for Immigration & Citizenship announced changes to a number of regulations, which result in new reporting obligations and potential cost savings for businesses that sponsor overseas employees. Financial penalties have also been introduced for the first time for companies that breach their sponsorship obligations. The new regulations will begin on 14 September 2009 and will impact all current and future sponsors/users of the temporary business long stay (subclass 457) visa program. Read more in our HR and tax alert (pdf, 125kb).

On 1 July 2009, the Australian government released revised proposals to change the taxation of employee share plans. These new rules will apply to shares or rights acquired from 1 July 2009. Overall, the revised proposals are good news for companies operating employee share plans. However, the Policy Statement requires further clarity on several important issues. Businesses should therefore defer any final decisions on potential changes to plans until draft legislation is available. Read more in our Tax insight (pdf, 119kb).

Recognising the unique needs and interests of those operating in the global mobility space, Ernst & Young has established the Institute for Global Mobility, a forum for sharing knowledge and discussing the issues that impact the profession.

The current economic climate is increasing pressure on organisations and Boards to review their current reward strategies and remuneration arrangements. In Under the spotlight (pdf, 113kb), we provide a snapshot of how we see companies responding to the challenge so far and what we anticipate they will consider for the coming year.

While businesses the world over look for strong leadership to withstand the economic downturn, executive pay has attracted greater scrutiny than ever in recent months. The summary of our annual analysis of executive and board remuneration practices (pdf, 637kb) of ASX 200 companies highlights key issues companies need to be aware of in structuring and commercially positioning their remuneration approach in today’s economic climate.