Share scheme contributions
Employer contributions to employee share schemes by way of shares or rights (including options) are liable as wages. Any similar contributions provided by way of remuneration to a company director, a member of the governing body of a company, or a relevant contractor are also liable as wages.
A share or right becomes liable on the relevant day. The relevant day in the case of a grant of a share is the date on which it is granted or vested. The relevant day in the case of a grant of a right or option is the date on which it is either granted or vested, at the employer's discretion.
The value of the share or right is the market value on the relevant day, as determined in accordance with the Commonwealth income tax provisions.
Frequently asked questions explain payroll tax on share benefits and the impact of the amendments to the legislation.
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