NO.014

Joint Media Release

Minister for Employment and Workplace Relations

GOVERNMENT RESPONSE TO NELSON REPORT ON EMPLOYEE SHARE OWNERSHIP

The Treasurer and the Minister for Employment and Workplace Relations today

released the Government’s response to the report of the Inquiry into employee

share ownership in Australia (the Nelson Report).

The report, Shared Endeavours, was released by the House of Representatives

Standing Committee on Employment, Education and Workplace Relations on 9 October

2000.

The report has made a significant contribution to debate in this important

area of Government policy. The Treasurer and the Minister for Employment and

Workplace Relations thank the Committee for its valuable work.

The Government’s response reaffirms the Government’s policy approach to employee

share ownership, which balances promoting benefits that may accrue as a result

of aligning the interests of employees and employers and limiting opportunities

for overuse.

To further encourage the growth of employee share ownership in Australia,

the Government has established an Employee Share Ownership Development Unit

within the Department of Employment and Workplace Relations, and will allow

rollover for certain holdings in employee share schemes in the event of a corporate

restructure such as a merger, demerger or takeover.

The new rollover measure will allow employees to roll over an employee share

scheme income taxing point in the event of a corporate restructure, subject

to certain conditions, including continuity of employment in the restructured

entity. Rollover will apply from 1 July 2004.

These measures foster the workplace relations and productivity benefits of

employee share ownership by maximising employee share take-up and cultural change,

and emphasising share take-up at the shop-floor level.

The Development Unit will work with employers and employees and provide assistance

with design, implementation and the provision of information. It will also collect

information about the barriers to further participation in share ownership schemes

and the scope for share ownership to encourage start-up activity.

The Government’s response to Shared Endeavours is attached to the electronic

copy of this press release at: http://www.treasurer.gov.au/tsr/content/publications.

27 March 2003

CANBERRA