Human Resources Legislative Update
Federal Government Postpones Changes to Stock Options
Date: January 2, 2020
In June 2019, the federal government tabled a Notice of Ways and Means Motion to limit the benefit of the employee stock option deduction for high income individuals employed at large, long-established, mature organizations. Stakeholders were invited to provide input on the characteristics of small, growing companies that should not be subject to the new rules.
On December 19, 2019, the federal government announced that the proposed changes will not come into force on the previously anticipated date of January 1, 2020.
The new effective date will be announced in the 2020 federal budget along with details on the types of companies that will not be subject to the new rules.