I’ve blogged previously about the Australian Government’s seemingly mindless attacks on support initiatives for innovation companies, but this latest ignorance really takes the cake.
In last week’s federal budget, the Government closed what it considered a “loophole” which allowed company employees to defer personal tax liabilities on company shares or options they are granted as part of a remuneration scheme. Employee share ownership plans (ESOPs) are a really valuable way of engaging key staff in an emerging company. It empowers “ownership” in a true sense, and is something that I’d preferred to engage our key leadership and growing team here at Locatrix.
Unfortunately, it’s also a method that highly paid executives of ASX-listed companies have used to defer tax, something the government is hell-bent on cracking down on. Fortunately, I’m not the only one complaining about this decision. There’s also a page one article in today’s Financial Review (link only available to subscribers).
While they probably have good intentions in one regard, Minister Tanner & co have again made a decision oblivious to the impact it has on the folks who work genuinely to create innovation jobs in this country.
Again, Mr Rudd, I voted for you. Willingly. Because I believed the country needed change. But as an entrepreneur, working to create jobs and commercialise Australian innovations, you are really, really disappointing me.