Taxable wages can include both cash and non-cash wages, salaries, remuneration, third-party payments and salary sacrifice amounts.
Note: Where taxable wages include a GST component, no payroll tax applies to that component.
Payroll tax shortcuts
Useful links
- Payroll Tax Act 1971
- Apprenticeships—Queensland
- Community Development and Employment Project
- Vocational Education, Training and Employment Act 2000
- Workers’ Compensation and Rehabilitation Act 2003
- Income Tax Assessment Act 1936
- NSW Office of State Revenue
- Vic. State Revenue Office
- WA Office of State Revenue
- RevenueSA
- Tas. State Revenue Office
- ACT Revenue Office
- NT Revenue Office
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Payroll tax is payable by employers on taxable wages.
Checklist of taxable wages
Taxable wages can include both cash and non-cash wages, salaries, remuneration, third-party payments and salary sacrifice amounts.
Note: Where taxable wages include a GST component, no payroll tax applies to that component.
Leave & allowances
Leave
| Type | Liability |
|---|---|
| Accident pay |
Taxable if you pay:
|
| Commonwealth Paid Parental Leave scheme | Not taxable |
| Holiday pay |
Taxable no matter when you pay it |
| Jury service | Taxable no matter when you pay it |
| Leave loading |
Taxable no matter when you pay it |
| Long service leave |
Taxable no matter when you pay it |
| Make-up pay |
Taxable no matter when you pay it |
| Military leave | Not taxable |
| Parental, adoption and surrogacy leave | Not taxable up to a maximum of 14 weeks on full pay and 28 weeks on half pay |
| Sick leave |
Taxable no matter when you pay it |
| Volunteer worker leave |
Not taxable if the employee is:
|
| Worker’s compensation payments | Not taxable if it is a:
|
Allowances
| Type | Liability |
|---|---|
| Accommodation | Taxable for the part of the allowance over $238.10 as long as it is used (can also include meals and incidentals) for overnight accommodation |
| Clothing |
Taxable |
| Living away from home | Taxable in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cwlth) |
| Meal |
Taxable |
| Motor vehicle | Taxable over an amount of 75c/kilometre when you calculate the number of kilometres an employee travels for business purposes in their own car |
| Overtime |
Taxable |
| Relocation |
Taxable |
| Tool |
Taxable |
Benefits
Benefits
| Type | Liability |
|---|---|
| Bonus |
Taxable |
| Car parking fringe benefits | Not taxable unless part of a salary sacrifice arrangement |
| Cars | Taxable |
| Employee payments |
Taxable if an employee receives a fringe benefit and must make payments towards, or reimburse the employer for, the associated fringe benefits tax Reduced tax if part of a salary sacrifice arrangement |
| Entertainment fringe benefits | Not taxable if the organisation is a tax-exempt body |
| Exempt benefits | Not taxable from 1 July 2011 |
| Fringe benefits |
Taxable (except for certain car parking and entertainment fringe benefits) Valued using the Type 2 gross-up factor |
| General benefits | Taxable and can include the provision of:
|
| Gifts | Taxable (includes discounts) |
| Low interest or interest free loans |
Taxable |
| Non-cash benefits | Taxable if they form or are defined as wages |
| Reimbursements |
Not taxable unless a fringe benefit An expense payment fringe benefit may arise where an employer:
These expenses may be business or private expenses or both |
Payments
Termination payments
| Type | Liability |
|---|---|
| Payments in lieu of notice |
Taxable if the employee must include it as assessable income for income tax purposes |
| Ex gratia payments or 'golden handshakes' |
Taxable if the employee must include it as assessable income for income tax purposes |
| Genuine redundancy payments | Not taxable if exempt from income tax |
| Early retirement scheme payments | Not taxable if exempt from income tax |
| Unused annual leave | Taxable |
| Unused long service leave | Taxable |
See Termination payments for more information.
Other forms of payment
| Type | Liability |
|---|---|
| Commissions |
Taxable if this is payable to an employee, including a:
You must include commissions in your return for the period in which the sale is settled or when the commission is paid, whichever happens first |
| Dividends (company share) | Not taxable |
| GST |
Not taxable |
| Shares and options including employee share acquisition schemes |
Taxable |
| Superannuation contributions |
Taxable whether for an employee or non-employee director |
| Superannuation guarantee levy |
Taxable |
Other types of wages
Specific types of employees
| Type | Liability |
|---|---|
| Apprentices |
Not taxable if they work for the whole period as apprentices and they are paid under the Vocational Education, Training and Employment Act 2000. Taxable if they are not performing services as an apprentice |
| Community Development Employment Project employees | Not taxable if wages are paid under this program |
| Consular staff | Not taxable |
| Contractors |
Taxable for work performed after 1 July 2008 You must ensure that these workers do not fit into the definition of an employee, as different conditions apply |
| Directors | Taxable |
| Trainees | Not taxable if they are paid under the Vocational Education, Training and Employment Act 2000 subject to certain conditions |
| Union representatives or board members |
Taxable if:
|
| Workers provided by an employment agent | Not taxable as the agency is liable instead |
Specific organisation wages
| Type | Liability |
|---|---|
| Exempt charitable institutions |
Not taxable if the exempt charitable institution pays a person:
|
| Government departments and other government bodies |
Taxable |
| Local authorities/councils |
Not taxable unless the wages are being paid in connection with the following activities:
Wages for other commercial activities will be subject to a payroll tax equivalent |
| Public hospitals |
Not taxable where the employee:
|
Non-Queensland employment
This information applies to wages paid on or after 1 July 2009. To determine whether particular wages are taxable in Queensland:
- see Public Ruling PTA039—Payroll tax nexus provisions
- use our Queensland taxable wages decision tree.
| Type | Liability |
|---|---|
| Wages paid or payable elsewhere for services performed entirely in Queensland |
Taxable |
| Wages paid or payable in Queensland for overseas employment—less than 6 months |
Taxable |
| Wages paid or payable in Queensland for overseas employment—more than 6 months | Not taxable if the employment is in another country for a continuous period of longer than 6 months The 6-month period starts on the date of the first wage payment for the overseas service |
| Wages paid or payable in Queensland for services performed in more than one state or territory other than Queensland | Taxable in certain circumstances |
To determine whether interstate or overseas wages paid before 1 July 2009 were taxable in Queensland, see the interstate and overseas wages information in our historical section.