Wrong. If the options are related to employee performance or...

Wrong. If the options are related to employee performance or other remuneration the difference between exercise price and prevailing share price is counted by the tax office as salary income. That means it's subject to PAYE at the employee's marginal tax rate (42%). That means it's payable to the ATO within 28 days. Do the sums. It's a big bill. And if he had to borrow the money to exercise the options then that has to be paid back too. It's typical for an employee to have to sell up to half their newly acquired shares to cover their costs.

The base price for capital gains tax calculation on the newly acquired shares is the prevailing share price when the options are exercised. That's because the difference between exercise price and market price has already been taxed as income.