Taxable and exempt wages

  What are taxable wages?​​

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The following types o​f payments are subject to payroll tax and are collectively called ‘taxable wages’: ​​​​​​​​​​​​​​​​​ ​​​​​​​​​​​​​​​​​​​​​​​​
  • salaries and wages;
  • ​​​commissions;
  • annual leave, long service leave and sick leave; 
  • pay in lieu of notice; 
  • non-monetary superannuation contributions;  
  • travel and accommodation allowances in excess of the prescribed rates; 
  • bonuses, prizes and incentive payments; 
  • ​make-up payments made by the employer for workers compensation;

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​  What are exempt wages?

   Wages paid by certain employers are exempt from payroll tax under Part 4 of the Payroll Tax Act 2008.​
   An exemption will generally apply to wages paid to employees of the following types of organisations: 
  • religious institutions;
  • non-profit private hospitals; 
  • private schools or colleges​ that do not provide education higher than secondary level; 
  • defence forces;  
  • public benevolent institutions; and 
  • non-profit charitable organisations.

 Refer to the Payroll tax exemption guideline​ and ruling​s for additional information.

  Non-profit training organisations

   Wages paid to employees administering or participating in group apprenticeship or group training schemes are            exempt from payroll tax where the: 

  • wages are paid by non-profit group training organisations; and 

  • a no​n-profit group training organisation is registered with the Tasmanian Traineeships and Apprenticeships             Committee.​​​​​ 


  If a moveable building (being a building that is fixed to land, not a caravan or mobile home) ​is being purchased, the     applicant is classified as an owner builder. ​ 

  • the commencement date is taken to be the date of the contract to purchase the new moveable building; and
  • the building must be new (that is, a building that has not previously been used as a place of residence). ​ ​​ 
 
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