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Checklist of taxable/exempt items

A to C

Wage TypeLiability StatusComments

  • Aboriginal Persons (payments made to)

  • Exempt under certain conditions

  • Wages exempt if an approved project

  • Accommodation allowances

  • Exempt component applies

  • Prescribed amount is released each year

  • Adoption leave

  • Exempt up to 14 weeks

  • Paid in addition to normal leave

  • Allowances

  • Taxable

  • All types liable except for exempt prescribed amounts for motor vehicles and overnight accommodation

  • Apprentice wages

  • Taxable

  • Rebate scheme applies

  • Back pay

  • Taxable

  • Benefits

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Bonuses

  • Taxable

  • Commissions

  • Taxable

  • Contractor payments (Contract for service)

  • Taxable unless exemption applies

  • Relevant contractor provisions apply

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D to G

ItemDescription Taxable or Exempt

  • Defence Force payments

  • Exempt

  • For time taken as Military Leave

  • Directors fees

  • Taxable

  • Deemed wages

  • Dividends

  • Exempt

  • Return on investment is not taxed

  • Employment Termination Payments (ETP)

  • Taxable (income taxable portion only)

  • Statutory redundancy components not liable

  • Emergency Operations

  • Exempt

  • For wages continued to be paid whilst involved in emergency operations

  • Employment agencies payments

  • Taxable

  • Employment agency itself is liable for on-hire contracts unless end user is exempt

  • Free holidays

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Fringe benefits

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Gifts related to service

  • Taxable

  • Gifts unrelated to service

  • Exempt

  • Fringe Benefits Tax limits apply

  • Golden handshakes

  • Taxable

  • Employment Termination Payment

  • Gross wages

  • Taxable

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H to P

Item Description Taxable or Exempt

  • Holiday pay

  • Taxable

  • Investment interest

  • Exempt

  • Return on investment is not taxed

  • Leave paid out

  • Taxable

  • All unused leave paid out

  • Leave loading

  • Taxable

  • Living Away from Home Allowance (LAFHA)

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Loans

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Long service leave

  • Taxable

  • Make up pay

  • Taxable

  • Payments additional to compulsory workers compensation amounts

  • Maternity leave

  • Exempt up to 14 weeks

  • Additional to normal leave

  • Meal money

  • Taxable

  • Declared as an allowance

  • Meals

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Motor vehicles

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Motor vehicle allowances

  • Exempt component applies

  • Applies to business use of private vehicles. Prescribed amount is released each year

  • Overtime

  • Taxable

  • Payments in lieu of notice

  • Taxable

  • Employment Termination Payment

  • Piece work payments

  • Taxable

  • For payments by quantity of output

  • Portable long service leave fund payments

  • Exempt (retrospective to 1 July 2006)

  • Prizes

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

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Q to Z

Item Description Taxable or Exempt

  • Quarters/Housing

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Redundancy Payments

  • Taxable (income taxable portion only)

  • Statutory Redundancy component not liable

  • Redundancy benefit scheme payments

  • Exempt (retrospective to 1 July 2006)

  • Payments made into or out of scheme

  • Reimbursements

  • Exempt

  • Must be a business expense which is accounted for

  • Retirement payout

  • Taxable

  • All unused leave is liable

  • Severance payments

  • Taxable

  • Employment Termination Payment

  • Service contracts (Contract of service)

  • Taxable

  • If there is an employer/employee relationship

  • Shares/options scheme

  • Taxable

  • Declare market value at granting or vesting date (conditions apply)

  • Shift allowances

  • Taxable

  • Sick pay

  • Taxable

  • Staff discounts

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Study leave

  • Taxable

  • Study expenses

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Subcontractors

  • Taxable unless exemption applies

  • Relevant contractor provisions Apply

  • Subscriptions

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Superannuation

  • Taxable

  • Including all lump sum and pre-tax effective salary sacrifice amounts

  • Termination payments

  • Taxable (income taxable portion only)

  • Statutory redundancy components not liable

  • Tool allowances

  • Taxable

  • Trainee wages

  • Taxable

  • Rebate scheme applies

  • Travel allowances

  • Taxable

  • Trust distributions

  • Exempt from 1 July 2007

  • Return on investment is not taxed

  • Uniform allowance

  • Taxable

  • Unused leave

  • Taxable

  • Employment Termination Payment

  • Vouchers

  • Taxable

  • As per Fringe Benefits Tax Assessment Act 1986

  • Workers compensation

  • Exempt

  • Only statutory compulsory amounts are not liable

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Last updated: 2008-10-31
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