Executive remuneration - Government responds to PC report - 16 April 2010
The Federal Government proposes to support almost all recommendations made by the Productivity Commission in its Report on Executive Remuneration, released earlier this year. An exposure draft Bill is expected to be released as part of a public consultation process prior to the Government introducing legislation to Parliament later this year.
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HKMA issues Guideline on a Sound Remuneration System - 31 March 2010
Hong Kong Monetary Authority (HKMA) has issued the Guideline on a Sound Remuneration System following the results of the industry consultation conducted in the final quarter of last year. The Guideline reflects the recommendations by the Financial Stability Board endorsed by the G20 as international standards on sound remuneration practices. It applies to all Authorised Institutions (AIs) in Hong Kong and in the case of overseas incorporated AIs, the remuneration systems applicable to officers and employees engaged in the conduct of their business and operations in Hong Kong.
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Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.
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Taxation of employee equity schemes - new valuation rules for unlisted rights
The Income Tax Assessment Amendment Regulations 2010 (No 1) (the “Regulations”) have come into force, effective 1 July 2009. The Regulations reflect the Exposure Draft Regulations released by Treasury on 14 August 2009 and provide a valuation methodology for certain unlisted rights acquired under an employee share scheme.
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Amendments to taxation of executive and employee benefits become law
Earlier today, the Senate passed without any amendment the Tax Laws Amendment (2009 Budget Measures No. 2) Bill 2009 that contains, amongst other things, the proposed amendments to the taxation of employee share schemes.
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PJC reports - fanning the winds of change
Last night Bernie Rippoll MP tabled the Parliamentary Joint Committee’s report into financial products and services in Australia. After considering hundreds of submissions and holding nine public hearings, the Committee has recommended the government consult with and support industry to develop mechanisms to cease payments from product manufacturers to financial advisers.
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Executive termination benefits laws commence
The new laws regulating executive and director termination benefits commence today as the Corporations Amendment (Improving Accountability on Termination Payments) Bill received royal assent from the Governor General yesterday.
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Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.
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Proposed amendments to taxation of employee equity schemes - release of Bills
The Tax Laws Amendment (2009 Budget Measures No. 2) Bill 2009 and the Income Tax (TFN Withholding Tax (ESS)) Bill 2009 (the “Bills”) have been introduced into the House of Representatives.
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Regulator - October 2009
Mallesons’ Regulator Newsletter offers perspectives on current regulatory issues from the Market Regulation team.
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Productivity Commission releases recommendations on executive remuneration
The Productivity Commission has released its draft discussion report on executive remuneration for public consultation. The report proposes reforms to the Corporations Act, the ASX Listing Rules and corporate governance standards to improve the accountability of boards, remove conflicts of interest and enhance shareholder engagement on executive remuneration.
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Executive termination benefit laws delayed in senate
The Government’s proposed reforms to laws regulating executive termination benefits have been delayed in the Senate. This means the earliest the laws can be passed is when Parliament resumes on 17 October 2009.
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Draft transitional provisions for proposed ESS amendments released
Treasury has released draft transitional provisions for the proposed amendments to the employee share scheme rules (Draft Transitional Rules). The Draft Transitional Rules are a significant departure from the previous understanding that the proposed amendments would only apply to shares or rights acquired on or after 1 July 2009.
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Director and executive termination benefits - Government releases final regulations
On 3 September 2009, the Government released the final regulations and explanatory material relating to the proposed reforms to termination payments (Regulations), which define “base salary”, clarify and expand the types of benefits that are (and are not) subject to shareholder approval and prescribe circumstances in which a benefit is given in connection with a person’s retirement.
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Proposed amendments to taxation of employee share schemes: release of Exposure Draft
Treasury has released the much anticipated exposure draft and draft explanatory materials (Exposure Draft) for the proposed amendments to the taxation of employee share schemes. These measures were first announced as part of the Federal Budget on 12 May 2009.
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Employee share schemes: impact of the Share Capital Tainting Rules
Companies may be required to recognise debits to their franking accounts, pay additional tax and be prohibited from making capital distributions following the recently released ATO ID 2009/87 on the share capital tainting rules.
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Proposed timetable and consultation process for changes to the employee share scheme rules
The Assistant Treasurer released today a press release outlining the process the Government intends to follow in legislating and implementing the proposed amendments to the taxation of employee share schemes.
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Further changes to Australian Employee Share Scheme rules announced
The Assistant Treasurer has issued a press release and policy statement (Press Release) setting out the Government’s “final” tax treatment of shares and rights acquired under employee share schemes. The Press Release contains some welcome changes from the initial proposal and the consultation paper and draft legislation that was released on 5 June 2009.
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Government introduces executive termination payment laws into Parliament
The Government has introduced its new laws regulating executive termination payments into Parliament. The Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009 (Bill) retains the key changes proposed in the Exposure Draft of the Bill released in May 2009 but does contain some important differences.
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Employee share schemes: Options paper and draft legislation for Budget changes released
On Friday 5 June 2009, the Federal Government released its options paper and draft legislation for the proposed amendments to the taxation of employee share schemes announced in the recent Federal Budget, for public consultation. The options paper and draft legislation contain significant changes to the existing rules relating to the taxation of employee share schemes. These are likely to significantly alter the way in which offerings of shares and options are designed and undertaken.
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Proposed employee share scheme amendments - key issues to consider
The Federal Government's announcement yesterday that it would fast track a consultation process on its proposed amendments to employee share schemes, as set out in the recent Federal Budget, is welcome news.
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Important changes to the employee share scheme tax concession
As part of the 2009/10 Federal Budget announcements on Tuesday 12 May, the Treasurer issued a press release indicating that new measures would be introduced to remove some tax concessions, and limit others, for employees who acquire shares and options under employee share schemes.
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2009 Budget overview- tax highlights at a glance
The 2009 - 2010 Budget was released by the Treasurer this evening, Tuesday 12 May 2009. As expected there were a number of major revenue and expenditure measures which will have a significant impact on business.
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Government releases new laws to limit executive termination benefits
The Government has now released a draft of its new laws regulating executive termination payments. Under these new laws, termination benefits for directors and certain senior executive employees exceeding one year’s average base salary will require shareholder approval.
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Permanent establishments: new Interpretative Decision issued
A new Interpretative Decision (ATO ID 2009/21) issued by the Australian Taxation Office highlights some important tax issues which need to be considered by US and other foreign resident taxpayers that lease substantial equipment in Australia.
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Genuine redundancy payments: final Taxation Ruling issued
The Commissioner of Taxation has issued Taxation Ruling TR 2009/2 (Ruling), which highlights some important issues to be considered in determining whether payments made to employees on the termination of their employment qualify for treatment as a genuine redundancy payment.
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Executive remuneration - tighter regulation moves a step closer
The Productivity Commission yesterday released its issues paper regarding the review into Executive Remuneration in Australia previously announced by the Rudd Government. The release of the issues paper now gives corporations and their advisers the opportunity to contribute to what will no doubt be an extensive debate on the best regulatory framework for executive remuneration in Australia.
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Business response to government intervention in golden handshakes - one to watch
The issue of executive remuneration is the subject of intense public debate and the reforms announced yesterday by the Rudd Government aimed at curbing “golden handshakes” are the first steps of government intervention to override the free market. It will be interesting to see the response of the business community to what is a populist measure.
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Government announces extension of APRA's supervisory and enforcement powers
Today the Assistant Treasurer and the Minister for Superannuation and Corporate Law announced that the Government proposes to introduce a Bill to regulate the non-operating holding companies (NOHCs) of life companies.
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Henry Review calls for final public submissions
Businesses now have their last opportunity to make submissions to the Henry Review of the Tax System, with a series of meetings announced for all capital cities to obtain public views.
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Executive Remuneration: Guidelines and Developments
On 17 February 2009, US President Barack Obama enacted the American Recovery and Reinvestment Act, which restricts executive remuneration for companies in receipt of funds from the Administration’s Troubled Assets Relief Program.
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New super guarantee draft ruling: Can overtime be "ordinary time earnings"?
The ATO has released a Draft Superannuation Guarantee Ruling (SGR 2008/D2) explaining the meaning of the terms “ordinary time earnings” and “salary or wages”. The ATO says that overtime and paid parental leave can both be included in an employee’s ordinary time earnings. Both views represent significant departures from the existing ruling and are likely to increase minimum superannuation contributions for many employers who have relied on the ruling.
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Tax System Review Panel releases consultation papers
Australia’s Future Tax System Review Panel headed by Dr Ken Henry, which is undertaking a major review of the tax system, today released three further consultation papers for public input. The papers report on the submissions received to date, provide some discussion of what the Panel believes are the major issues and outline further questions which the Panel seeks input on in order to complete their final report in December 2009.
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Prevention of double taxation for rights provided through employee share trusts
Proposed amendments introduced to Parliament on 3 December 2008 will extend the tax relief granted earlier this year to the transfer of shares from employee share trusts to employees in satisfaction of rights or options granted under employee share schemes.
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Tax issues affecting rights issues, share purchase plans, demergers and returns of capital
A recent class ruling issued by the Commissioner of Taxation (CR 2008/61) has highlighted an important tax issue that may arise in relation to any rights issues, share purchase plans, demergers or returns of capital you are undertaking.
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Legislative amendments to restore the tax treatment of rights issues
An Act to restore the original income tax treatment of rights issued by issuing entities to existing shareholders or unitholders to acquire relevant interests in those entities received Royal Assent on 20 September 2008.
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Superannuation for temporary residents - Bills introduced
Following an extensive consultation period which commenced with the release of a discussion paper on 5 May 2008, the Government yesterday introduced legislation into the House of Representatives which addresses the number of lost accounts and unclaimed money in the superannuation system which is referable to temporary residents who have departed Australia.
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Australia’s National Innovation Report- Key Points for Corporate
On 9 September 2008, the Federal Government released a major report on Australia’s National Innovation System. The Report was prepared by a panel chaired by Dr Terry Cutler, which included respected economists and research industry experts. This Alert identifies the specific key recommendations and issues raised by the Report which would have a legal impact on major corporations.
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Australian tax system review - Treasury Discussion Paper issued
The Federal Government has released the Treasury Discussion Paper on the proposed reform of Australia’s tax system prepared by a team led by Treasury Secretary, Dr Ken Henry. The paper boosts the prospect of a future cut in Australia’s corporate tax rate by emphasising that the Australian rate is now above the OECD average.
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Tax highlights - NSW Budget
The Treasurer, the Hon Michael Costa, today handed down the NSW Budget. The budget result for 2008-9 is expected to be a surplus of $268 million.
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Offshore funds - release of CFC/FIF issues papers
The Board of Taxation this week released issues papers on possible reforms to Australia’s foreign source income anti-tax-deferral regimes. The closing date for submissions in relation to the issues papers, and the earlier position paper released on 12 March 2008, is 20 June 2008.
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2008-09 Budget changes affecting employee share and option schemes
Proposed changes in the 2008-09 Budget may affect both participants and administrators of employee share and option schemes. Participants may be affected by the proposed changes to the election requirements, particularly if they are seeking to obtain the benefit of the 50% capital gains tax (CGT) concession. Administrators of employee option warehouse trusts will welcome the proposed CGT relief to prevent double taxation.
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2008 Budget overview - tax highlights at a glance
The 2008 - 2009 Budget by the new Labor Government was released this evening Tuesday 13 May 2008. As expected there were a number of major revenue and expenditure measures which will have a significant impact on business.