18Inclusion of grant of shares and options as wages

18 Inclusion of grant of shares and options as wages (1) For this Act, wages include the grant of a share or an option to an employee by an employer in respect of services performed by the employee if the share or option: (a) is an ESS interest (within the meaning of section 83A-10 of the ITAA); and

Payroll Tax Act 2009 16 (b) is granted to the employee under an employee share scheme (within the meaning of that section). A grant of a share or an option to an employee by an employer that is not an ESS interest will be taxable as a fringe benefit under Division 2 of this Part. (2) Any such wages are taken, for the imposition of payroll tax, to be paid or payable on the relevant day. (3) For this Division, the relevant day is the day the employer elects in accordance with this Division to treat as the day on which the wages are paid or payable. (4) To avoid doubt, the grant of a share or option is valuable consideration for section 46.