Assistant Treasurer Chris Bowen said yesterday the Government was ''taking on board some of the concerns'' about its proposed changes, which have prompted many companies to put their employee share schemes on hold.

The changes mean those earning more than $60,000 will be taxed upfront on share packages, with a $1000 tax exemption for those earning less than this. Previously, any employee could use the tax exemption or choose to defer paying tax.

The proposals were expected to save the Government $200million in the next four years.

Mr Bowen said the Government would examine the most efficient way of protecting the tax base and reducing potential avoidance and confusion, while maintaining support for schemes for low- and middle-income workers.

''Given the community concerns with the proposed changes and the possible unintended adverse impacts on employee share scheme arrangements for ordinary employees, the Government will be fast-tracking the consultation process, beginning with the release of a policy options paper in the next fortnight,'' he said.

The consultation program will seek submissions on:

The level of the income threshold for accessing the $1000 tax exemption for upfront taxation.

When it may be appropriate to provide for the deferral of taxation, the period of deferral and what those limited circumstances would be.

Reporting requirements to address tax avoidance concerns.

Whether the tax law provisions which determine the market value of discounted and deferred shares or rights result in undervaluation.

Australian Industry Group chief executive Heather Ridout was pleased the Government was revisiting the issue.

''In the interim, the pre-budget scheme should be restored in order to give employers and employees greater confidence in the arrangements,'' she said.

''We would like to see any changes to the schemes to be consistent with promoting the very good practice of share ownership by employees in their companies.''

Australian Chamber of Commerce and Industry acting chief executive Greg Evans also welcomed the opportunity for consultation.

''It is not clear to us that there needs to be a change in any case. Employee ownership schemes provide important remuneration flexibility that is particularly important in small start-ups, etc, where remuneration may be very low in the early years and employees are offered equity participation as a means of compensating for that.''

Australian Council of Trade Unions president Sharan Burrow said she was concerned about the changes.

''We absolutely support making sure that people aren't simply ripping off taxes at the high end but when you've got working people who have been given bonuses, an ownership of the company through shares as part of their remuneration package, then we've simply asked the Government to look at it to see that the $60,000 is raised to an appropriate level,'' she said.

She declined to say what an appropriate level was.