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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:

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.

Last modified: 3 July 2025

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