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The Payroll tax guide: Shares and options provides detailed information and examples about Employee Share Scheme interests and payroll tax in New South Wales. For more general information read the shares and options page. We advise that you read this guide with:

Chapters

  1. What is an Employee Share Scheme (ESS) interest?
  2. Declaring ESS interest for payroll tax
  3. Calculating wages arising from the grant of a share or option
  4. Restrictions on the disposal of shares and options and other conditions
  5. Consideration paid or given
  6. Shares and options granted in an overseas parent company and exchange rates
  7. Withdrawal, cancellation or exchange shares or options
  8. Rescission, lapse or forfeiture of shares and options
  9. Dividend equivalents
  10. Application of nexus provisions to ESS

6. Shares and options granted in an overseas parent company and exchange rates
On this page

Taxable wages must be declared in Australian dollars.

You must convert to Australian dollars:

  • the value of shares or options granted in an overseas parent company, and
  • any consideration paid for them in a foreign currency.

Employers can use one of the following exchange rates for the conversion.

RBA exchange rate

The exchange rate to be used is the Reserve Bank of Australia's daily rate, published for the day on which the shares or options are deemed to have been paid or payable.

ATO yearly average exchange rate

If a particular currency is not published by the RBA, the yearly average rate published by the Australian Taxation Office for the financial year in which the relevant day falls can be used.