Payroll Tax Act 1971

The value of taxable wages comprising the grant of a share or option is taken to be the amount equal to—

the value, in Australian currency, of the share or option on the relevant day; less

any consideration paid or given by the grantee for the share or option, other than consideration in the form of services performed.

For subsection (1)(a), the value of a share or option is—

the amount worked out under the regulations made under the Income Tax Assessment Act 1997 (Cwlth), section 83A-315, as applied by subsection (3); or

if paragraph (a) does not apply—the market value of the share or option.

For working out the value of a share or option under subsection (2)(a), the regulations mentioned in that subsection apply with the following changes—

the value of an option is worked out as if it were a right to acquire a beneficial interest in a share;

a reference to the acquisition of a beneficial interest in a share or right is taken to be a reference to the grant of a share or option;

with any other necessary changes.

In working out the market value of a share or option, anything that would prevent or restrict conversion of the share or option to money must be disregarded.

An employer must give evidence of the value of a share or option to the commissioner if asked by the commissioner.

If the commissioner is not satisfied with the evidence given by the employer under subsection (5), the commissioner may appoint a person to value the share or option.

If the value stated by the person appointed under subsection (6) is more than the value stated by the employer, the commissioner may claim all or part of the valuation costs from the employer.