1/ The asset might have decreased in value, but the payment has...

1/ The asset might have decreased in value, but the payment has not. The payment was then, you are revaluing the asset now

Let's say Wood was paid entirely in equity, and make it shares to simplify the argument. So let's say he was paid $510,195 totally in shares in 2008, calculated at the 14c per share market price at the time of grant. This is then entered into the 2008 Report as his 2008 remuneration. Would you look back now in the context of the 2c share price and say he was only paid 1/7th of $510,195?
Or what if he was paid with a house worth $510,195, and the residential market declines by 85%; can he now claim that he was paid less than $510,195 in 2008?
Options are the same in that they had a monetary value at the time of grant, and what they are worth now does not change that grant value.

2/ The options are an asset. Centrelink has its own rules, but I'm surprised that anyone there ruled that share options are not a deemable asset. The options are claims at a fixed price over shares in the future, and and had a calculable monetary value at the time of granting. A particular Centrelink ruling, for a client there, is not the authority as to what options granted to an executive are worth.

You can pile all the verbiage you want on top of it but you are wrong. The very annual report that the company published says you're wrong for god's sake.

And since you persist in digging in, here's another point on which you were wrong. He was paid 2,500,000 options in 2008.
His balance of vested and exercisable options at end of fy 2008 was 5,842,515 options.
(page 53 annual report)

You said, " Your inference was that Philip Wood earned or cost the Company $510,195 in 2008. That is clearly wrong. While it is stated in the Annual Report 2008 as follows "Remuneration paid to Directors and key management personnel of the Group 2008 Executive Directors" and that a figure of $510,195 is given, it does not apply to 2008. The Options have been acquired over the years and not all in 2008."

All the options in question, 2,500,000 of them, were acquired in 2008.