Share and options

​​​The value of an employer’s contributions under a share acquisition scheme will be liable for payroll tax where shares or options are granted to:

  • an employee;
  • a director;
  • a former director; 
  • a member of the governing body of the company; or
  • a former member of the governing body.

The employer is able to choose the liability date. The liability date is either the:

  • date on which the share or option is granted to the employee; or
  • vesting date (the date when all conditions of the grant have been met and the legal or beneficial ownership is unable to be rescinded) of the share or option.
The granting of a share or option, which is classified as a fringe benefit under the Fringe Benefits Tax Assessment Act 1986, will not be seen as a fringe benefit, but rather as wages for payroll tax.
Salary sacrifice
Taxable items

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