Share Plan Reform Snapshot
Agenda for share plan reform
The Employee Ownership Group (EOG) has called on the Federal Government to implement the following measures identified in our EOG Policy :
- A single share plan with tax-exempt and tax-deferred elements;
- Tax to be applied only when the value of shares is realised;
- Growth in share value to be taxed as capital rather than as income;
- The flexibility to offer a wider range of equities than simply ordinary shares;
- More advanced share plan integrity measures; and
- Streamlined disclosure requirements.
Modest cost of new share plan
The Employee Ownership Group (EOG) has demonstrated the economic credibility of these proposals. It engaged the respected economic modeller Econtech and its report (see our "Economic Impact" page) showed:
- that our proposals represent a cost to budget of just $73 million; and
- that, depending on productivity assumptions, the cost to budget will fall and be offset by increases in national income of between $183 million and $665 million.