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A payroll tax exemption for maternity leave is available for leave taken by mothers in relation to the pregnancy and birth of a child and for leave taken by parents in relation to adopting a child.

The period of exemption is 14 weeks full time or the part time equivalent. For example, a parent can choose to take 28 weeks at half pay, which would be exempt as it is the equivalent of 14 weeks full time. The exemption covers all payments, including superannuation contributions, allowances, bonuses and commissions. However, fringe benefits provided to an employee while they are on maternity or adoption leave are not exempt.

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