Scam alert

We are aware of an email, phone and mail scam related to fines. More information                                                                                                

Checklist of liable and exempt items

A to C

Wage type Liability status Comments
Aboriginal Persons (payments made to) Exempt under certain conditions Wages exempt if an approved project
Accommodation allowances Exempt component applies  
Adoption leave Exempt up to 14 weeks full-time or equivalent period if paid at a reduced rate of pay. Paid in addition to normal leave
Allowances Liable All types liable except for exempt component for motor vehicles and accommodation 
Apprentice wages Liable Rebate scheme applies 
Back pay Liable  
Benefits Liable Rebate scheme applies 
Bonuses Liable  
Commissions Liable  
Contractor payments under a relevant contract Liable Relevant contractor provisions apply

D to G

Wage type Liability status Comments
Defence Force payments Exempt For time taken as military leave
Directors fees Liable  
Dividends Not liable Return on investment is not liable
Early retirement scheme benefits Liable (income taxable component only)  
Employment Termination Payment (ETP) Liable (income taxable component only) Statutory redundancy components not liable
Emergency operations Exempt For wages paid to a volunteer member involved in emergency operations 
Employment agencies payments Liable Employment agency itself is liable for on-hire contracts unless end user is exempt
Free holidays Liable As per Fringe Benefits Tax Assessment Act 1986
Fringe benefits Liable As per Fringe Benefits Tax Assessment Act 1986

Gifts related to service Liable  
Gifts unrelated to service Not liable Fringe benefits tax limits apply
Golden handshakes Liable Employment Termination Payment
Gross wages Liable  

H to P

Wage type Liability status Comments
Holiday pay Liable  
Jury Duty (employer payments) Liable Payments made by an employer to an employee are liable wages
Jury Duty (court payments) Not liable Payments made by the court system to an employee are not liable wages
Leave paid out Liable All unused leave paid out
Leave loading Liable  
Living Away from Home Allowance (LAFHA) Liable As per Fringe Benefits Tax Assessment Act 1986
Loans Liable As per Fringe Benefits Tax Assessment Act 1986
Long service leave Liable  
Make up pay Liable Payments additional to compulsory workers compensation amounts
Maternity leave Exempt up to 14 weeks full-time or equivalent period if paid at a reduced rate of pay. Paid in addition to normal leave

Meal money Liable Declared as an allowance
Motor vehicles Liable As per Fringe Benefits Tax Assessment Act 1986
Motor vehicle allowances paid as flat or fixed amount Exempt component applies Applies to business use of private vehicles

Motor vehicle allowances paid on per kilometre basis Not liable Applies to business use of private vehicles. The car expense payment must be exempt under the Fringe Benefits Tax Assessment Act 1986
Overtime Liable  
Paid parental leave (PPL) paid by the Commonwealth Government Not Liable  
Partnership drawings Not liable  
Paternity leave Exempt up to 14 weeks full-time or equivalent period if paid at a reduced rate of pay. Paid in addition to normal leave
Payments in lieu of notice Liable Employment Termination Payment 
Piece work payments Liable For payments by quantity of output
Portable long service leave fund payments Not liable  
Prizes Liable As per Fringe Benefits Tax Assessment Act 1986

Q to Z

Wage type Liability status Comments
Quarters/Housing Liable As per Fringe Benefits Tax Assessment Act 1986
Redundancy Payments Liable (income taxable component only) Statutory redundancy component not liable
Redundancy benefit scheme payments Not liable Payments made into or out of scheme
Reimbursements Not liable Must be a business expense which is accounted for
Retirement payout Liable All unused leave is liable
Severance payments Liable Employment Termination Payment
Service contracts (Contract of service) Liable If there is an employer/employee relationship
Shares/options scheme Liable Declare market value at granting or vesting date (conditions apply)
Shift allowances Liable  
Sick pay Liable  
Staff discounts Liable As per Fringe Benefits Tax Assessment Act 1986

Study leave Liable  
Study expenses Liable As per Fringe Benefits Tax Assessment Act 1986
Subcontractors Liable unless exemption applies Relevant contractor provisions apply
Subscriptions Exempt component applies As per Fringe Benefits Tax Assessment Act 1986 
Superannuation Liable Including all lump sum and pre-tax effective salary sacrifice amounts
Termination payments Liable (income taxable portion only) Statutory redundancy components not liable
Tool allowances Liable  
Trainee wages Liable Rebate scheme applies
Travel allowances Liable  
Trust distributions Not liable  
Uniform allowance Liable  
Unused leave Liable Termination Payments
Volunteer fire-fighters Exempt For wages paid while involved in bushfire fighting activities
Vouchers Liable As per Fringe Benefits Tax Assessment Act 1986
Workers compensation Not liable Only statutory compulsory amounts are not liable
Last updated: 7 July 2016