Opposition attack employee share scheme

The claws are out on the Rudd Government’s changes to the employee share scheme, announced in last week’s Budget. Debate has been rife on the negative effects to small business, and now Shadow Assistant Treasurer Tony Smith has weighed in, claiming it will unfairly affect small business and high tech start up companies.

The Opposition may seek to block the measure, claiming that “employee share schemes right across the country have been suspended and shut down” and they would like to know what the Government’s “intentions” are.

Mr Smith said the business community have been urgently calling for clarification on the scheme, fearing they will be unfairly punished by the scheme.

A spokesperson for the Assistant Treasurer Chris Bowen says the Government acknowledges there have been concerns about the employee ownership schemes, but the scheme is designed to ensure that everyone pays their fair share of tax.

The spokesperson said the Government will be consulting with stakeholders when the legislation covering the scheme is released.

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