Payroll Tax Act 1971

This section applies if a grantor grants a share or option to a grantee and any of the following applies—

the value of the grant of the share or option is not included in the taxable wages paid or payable by the grantor for a return period during which the share or option is granted;

the value of the taxable wages comprising the grant of the share or option is nil;

if the grantor were to elect to treat the day the share or option is granted as the relevant day, the wages would not be liable to payroll tax or the mental health levy.

If subsection (1)(a) applies, the grantor is taken to have elected to treat the vesting day for the share or option as the day on which the wages comprising the grant of the share or option are paid or payable.

If subsection (1)(b) or (c) applies, the grantor is taken to have elected to treat the day the share or option is granted as the day on which the wages comprising the grant of the share or option are paid or payable.

This section applies despite section 13R.