Canberra Business Chamber, the ACT’s peak business organisation, today welcomed the changes to the taxation of Employee Share Schemes announced by the Federal Government last week saying the changes will help more Canberra start-ups to attract and retain staff and compete in the global market.
“The amendments introduced by the Federal Government will streamline the process of establishing and maintaining an employee share scheme and make it easier for entrepreneurs and start-ups to do business in the ACT and across Australia”, Chris Faulks, CEO of Canberra Business said. “This will increase the international competitiveness of ACT and Australian firms and help this important sector turbocharge growth across the economy.”
“Canberra Business is pleased to see that the Federal Government has listened to small business on this vital economic issue”, Chris Faulks said. “The changes will allow more businesses to attract and retain highly-skilled staff without the significant tax and compliance costs they currently face”.
Mr Glenn Keys, Chair of Canberra Business Council, said the provision of an additional concession targeted at small start-ups will encourage more innovative businesses to establish in the ACT rather than look offshore for more favourable business conditions.
“The ACT was an ideal location for innovative start-up businesses to establish and grow”, Mr Keys said.
“The ACT has a number of distinctive competitive advantages for smart start-ups. We have the highest education and income levels in Australia, a first rate education system, a cluster of outstanding research and learning institutions, a closely connected and collaborative business community, an unrivalled lifestyle and an ACT Government that is increasingly recognising and supporting smart start-up companies”.
“Small business is the engine room of the ACT economy”, Ms Faulks said. “We have approximately 25,000 businesses in the ACT, 96% of which have less than 20 employees – so the ACT private sector is overwhelmingly about small business.”
Ms Faulks noted that the changes to employee share schemes are part of an ambitious Federal Government agenda for small business that includes the company tax cut for small business announced earlier this year and, hopefully, will mean further announcements for small business in the upcoming Federal Budget.
For further comment contact: Chris Faulks, CEO 0421994488