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.
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Payroll tax is payable by employers on 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.
This list is a general guide on which wages are taxable and which are not. See the Payroll Tax Act 1971 for full details.
| Type | Liability |
|---|---|
| Accident pay |
Taxable if you pay:
|
| 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 and adoption 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:
|
| Type | Liability |
|---|---|
| Accommodation | Taxable for the part of the allowance over $218.30 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 |
All fringe benefits are taxable and valued using the Type 2 gross-up factor.
| 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 |
| 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 |
| Type | Liability |
|---|---|
| Payments in lieu of notice |
Taxable when:
|
| Redundancy or severance payments | Taxable |
| Resignation or retirement payments | Taxable—both accrued wages and leave entitlements |
| Unused annual leave | Taxable |
| Unused long service leave | Taxable |
View Termination payments for further information.
| 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 |
| 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 |
| 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 |
| Type | Liability |
|---|---|
| Exempt charitable institutions |
Not taxable if the exempt charitable institution pays a person:
|
| Government departments and other government bodies |
Taxable |
| Local authorities |
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:
|
| Type | Liability |
|---|---|
| Services performed partly in Queensland, wages paid or payable in Queensland |
Taxable |
| Wages paid or payable elsewhere for services performed entirely in Queensland |
Taxable |
| Wages paid or payable elsewhere for services performed only partly in Queensland | Not taxable |
| Wages paid or payable in Queensland for overseas employment | 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 entirely performed in one other state or territory | Not taxable |
| Wages paid or payable in Queensland for services performed in more than one state or territory other than Queensland | Taxable |
See Interstate and overseas wages for more information.