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What is taxable or exempt?

This checklist provides guidance on the payroll tax treatment of certain items.

Table of remuneration items

Remuneration item Taxable or exempt
Accommodation (housing and other accommodation provided by the employer) Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Accommodation allowances Taxable under certain conditions
Adoption leave Exempt (up to 14 weeks)
Agency-supplied staff Taxable under certain conditions
Allowances Taxable under certain conditions
Annual leave Taxable
Annual leave paid on termination Taxable
Apprentice wages (paid by approved Group Training Organisations Exempt under certain conditions
Apprentice wages  Taxable unless paid to re-employed apprentices or trainees from July 2016
Backpay Taxable
Benefits Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Board and quarters Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Bona-fide redundancy payments (tax-free component) Exempt
Bonuses Taxable
Car allowances  Taxable under certain conditions
Car parking Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Clothing allowances Taxable
Commissions Taxable
Consultants' fees Taxable under certain conditions
Contractor payments Taxable under certain conditions
Credit cards provided to employees Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Debt waivers (waiver of debt provided by the employer to an employee) Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Defence Force payments Exempt
Directors' fees Taxable
Dirt allowances Taxable
Discounted staff purchases Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Education expenses paid by the employer for an employee  Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Employer-funded (pre-income tax) superannuation contributions Taxable
Employment agency personnel Taxable under certain conditions
Entertainment allowances Taxable
Footwear allowances Taxable
Fringe benefits Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Gifts provided by the employer to an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Gross wages Taxable
Health insurance paid by the employer on behalf of an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Holiday pay Taxable
Jury service payments by the employer to an employee Taxable
Leave loading Taxable
Living away from home allowances Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Loans (interest free/low interest) Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Long service leave Taxable
Make-up pay Taxable
Maternity and adoption leave Exempt*
Meals provided by the employer for an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Meal allowances Taxable
Motor vehicles provided by the employer for an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Motor vehicle allowances Taxable under certain conditions
Options Taxable under certain conditions
Outworker payments Taxable under certain conditions
Overtime Taxable
Overtime meal allowances Taxable
Paternity leave Taxable*
Pay in lieu of notice Taxable
Paid parental leave (funded by the Federal Government) Exempt*
Personal services income Taxable under certain conditions
Piece-work payments Taxable
Prizes provided by employer to an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Professional advice provided or funded by the employer  Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Redundancy payments Taxable under certain conditions
Reimbursements (business expenses) Taxable under certain conditions
Relocation payments Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Rental subsidy allowances Taxable
Representation allowances Taxable
School fees paid by the employer on behalf of an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Share schemes Taxable
Shift allowances Taxable
Sick pay Taxable
Site allowances Taxable
Staff discounts Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Subcontractors Taxable under certain conditions
Subscriptions paid by the employer for an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Superannuation contributions (pre-income tax/employer) Taxable
TAC payments Exempt
Taxi fares paid by the employer for an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our fringe benefits ruling
Telephone account payments paid by the employer for an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Termination payments  
Taxable
Taxable
Exempt
Taxable
Tool allowances Taxable
Trainee wages  Taxable
Trainee wages (re-employed trainees or apprentices) from 1 July 2016  Exempt
Travel (free or subsidised) Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Travel allowances  Taxable under certain conditions
Volunteer firefighters and other emergency workers (wages to employees absent from work to volunteer for firefighting or emergency operations) Exempt
Uniform allowances Taxable
Vouchers provided by the employer to an employee Determined in accordance with the Fringe Benefits Tax Assessment Act 1986 (Cth) and our Fringe Benefits Ruling
Workers compensation payments Exempt

* From 1 July 2019, the exemption for maternity and adoption leave wages has been broadened to include all parental leave wages.

Last modified: 20 April 2020
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