Feeds

Startup-land finds a sympathetic ear in Canberra

Promised review of employee share schemes to conduct public consultations

The essential guide to IT transformation

Startup-land's liking for gifts of scrip as a way to keep wages and burn rate low has found sympathy within Australia's Treasury, which has opened a public consultation on the topic of employee share schemes.

Reform of the system was promised by Australia's previous government, as we reported last year, but the ball seems to have been dropped at some point. This new consultation seems to be framed around the notion the current rules are broken, opening with a statement that “The Government is committed to addressing the concerns that have been raised by startups in relation to Employee Share Schemes”.

Detailed here, the consultation will run for two weeks and feature real-world and online consultation, plus the chance to use this thoughtfully-provided cover letter on posted submissions.

Startup-land generally believes that employee share schemes are too hard to do in Australia, thanks to rules that cap the level of salary sacrifice. That in turn, it is argued, makes it hard for nascent businesses to attract the kind of folks willing to turn a startup into a smash hit, then cash in on their shares in order to end up with more currency in their pockets than would be the case if they worked for their market value elsewhere.

Exhibit A for that argument is Atlassian's recent departure from Australia, a move motivated in part by a desire to offer an enhanced employee share scheme.

Vulture South has no little admiration for those willing to put ambition ahead of beer money, but is also uncomfortable with those who believe Australia would be a more innovative nation if it offered the same business environment as Silicon Valley.

For what it is worth, Australia recently won third spot in the Heritage Foundation's 2014 Index of Economic Freedom (The USA was 12th and UK 14th), placing it among just six nations ranked as "free".

The Heritage Foundation also had this to say about starting a business in Australia:

"Australia’s highly competitive regulatory framework promotes business formation and operational efficiency. With no minimum capital standards, starting a company requires only one procedure. Flexible labor regulations enhance employment and productivity growth."

Yes, we know the Heritage Foundation is a very conservative organisation. But if even such an entity says Australia is among the six freest nations on earth, would better share schemes for employees really make a difference? ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.