The Morrison Government will release a consultation paper on proposed reforms to encourage small businesses to offer employee share schemes to help them attract and retain employees.
The key proposals the Government will consult on are:
- Consolidating exemptions and class order relief from disclosure, licensing, hawking, advertising and other obligations in the Corporations Act;
- Increase the value limit of financial products that can be offered by unlisted companies in a 12 month period from $5,000 per employee to $10,000 per employee;
- Expand relief for unlisted companies offering an ESS to cover contribution plans, where an employee can make a monetary contribution to acquire financial products;
- Allow small businesses to offer an ESS without publicly disclosing commercially sensitive financial information in lodged disclosure documents, unless they are otherwise obligated to do so.
The government said the proposals would make it more attractive for businesses to offer employee scheme sharing by simplifying, consolidating and expanding the current regulatory framework.
You can submit responses to the consultation until 30 April 2019 here, with lodgements available electronically or by post.