Home
Taxes and duties
Payroll tax
About payroll tax
Wages
Checklist of taxable/exempt items

Checklist of taxable/exempt items

A to C

Wage Type	Liability Status	Comments
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

D to G

Item	Description	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

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

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

More information

Resources

Last updated: 15-Jun-2009