Exempt wages and payments

Wages exempt from ACT payroll tax are specified under ACT Payroll Tax legislation. Exempt wages include those paid or payable as follows:

by an organisation that is:

  • a charitable organisation (other than a charitable organisation carried on for an educational purpose);
  • a charitable organisation that is a school or college (other than a technical school or college) carried on by a body corporate, society or association and providing education at or below, but not above, the secondary level of education;
  • a hospital that is a recognised hospital under the Health Insurance Act 1973 (Cwlth);
  • an approved Group Training Organisation from 1 June 2006 in respect of wages of trainees and apprentices for the full term of an approved training contract (refer to circular PTA070 [RTF, 170Kb], [PDF, 133Kb]).

By an authority that is:

  • the Governor General;
  • a Territory authority funded solely by money appropriated from the public money of the Territory by an Act unless:
    • the wages are paid or payable by a Territory authority prescribed for the Taxation (Government Business Enterprises) Act 2003, section 9; or
    • the wages are paid or payable by a Territory authority to which a direction under the Taxation (Government Business Enterprises) Act 2003, section 10 applies to make the authority liable to tax under this Act.

to a person who:

  • is a member of his or her official staff by a representative (other than a diplomatic or consular representative) in Australia of the government of another country;
  • a person who is a member of the Defence Force, being wages paid or payable by the employer from whose employment the person is on leave by reason of the person being such a member;
  • a person who takes part in activities under the Emergencies Act 2004 as a volunteer member of the rural fire service, SES, a community fire unit or as a casual volunteer. However, wages that are paid or payable as annual leave, long service leave or sick leave for such volunteers are not exempt wages;
  • a person who is a new starter, is employed for the first time in an industry or occupation and is receiving eligible training that is approved training as described for the purposes of the Training and Tertiary Education Act 2003 for work in the industry or occupation, and commences training within the first 12 months of employment and continues with that training for no more than 12 months;
  • a person who was previously long term unemployed (refer to circular PTA072 [RTF, 171Kb], [PDF, 134Kb]);
  • is an employee on paid maternity, adoption and/or primary carer leave for a maximum of 14 weeks (refer to circular PTA012 [RTF, 180Kb], [PDF, 137Kb]);

Others:

  • from a bank account kept under the Financial Management Act 1996, part 5, unless:
    • the bank account is nominated by the Minister in writing for this subparagraph; or
    • the wages are paid or payable by an entity prescribed for the Taxation (Government Business Enterprises) Act 2003, section 9; or
    • the wages are paid or payable by an entity to which a direction under the Taxation (Government Business Enterprises) Act 2003, section 10 applies to make the entity liable to tax under this Act.

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