As widely reported, the Australian tax regime relating to employee share schemes was overhauled and replaced with a completely new set of rules which came into effect on 1 July 2009.

Under the new Australian tax rules, employers must now pay payroll tax on employee share plans and issuers of shares or rights under these plans will be subject to reporting requirements to the Australian Tax Office and to employees using the approved forms.

As part of a recent survey prior to the NASPP Conference in Chicago (20-23 September 2010), a number of stock plan professionals working for issuers were asked how their companies would react in light of these recent tax changes and reporting requirements affecting their Australian share plans.

Over 40% of those professionals in the survey advised that they would be modifying their share plans in some way, clearly highlighting the repercussions that these tax changes and reporting requirements will have on companies with share plans in Australia.

Click here to see a pie chart of the participants views.