In an interview on ABC Radio National, the treasurer has indicated that the government intends to close what he calls a tax loophole concerning the use of executive share option schemes. Mr Swan said there has been a loophole in the system ‘where those with the shares who are predominately higher income earners and people who’ve accumulated shares or rights through their company, have been able to avoid paying their fair share of tax’.
It is estimated that $77 million in tax is avoided annually through this “loophole”.