Rules and exemptions for different education providers.
Payroll tax rules depend on the type of organisation and whether wages are for providing education.
Non-profit, non-government schools
Wages paid by certain schools to persons providing educational services are exempt from payroll tax.
From 1 July 2024 the exemption applies to:
- non-profit, non-government schools declared by the Minister for Education
- wages paid or payable to people providing educational services.
Wages paid by all other schools are subject to payroll tax if they are above the relevant thresholds.
Until 1 July 2024, non-profit, non-government schools were not taxed on wages paid to people providing educational services.
The Education and Training Reform Act 2006 defines what is a non-government school. This includes most conventional non-government schools.
School councils
Wages paid or payable by a school council to a person for providing education are exempt from payroll tax.
The Education and Training Reform Act 2006 defines what is a school council.
Non-profit educational services providers
From 1 July 2024, wages are only exempt if they are paid in relation to providing education services to a declared school.
Before 1 July 2024, wages were exempt if they were for educational services to a school that was exempt from payroll tax.
