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Australian Revenue Offices
Term/Acronym Definition

Employment Termination Payment


Any person who pays or is liable to pay any wages, including the Crown in right of a State or Territory.

For the Payroll Tax Act 2000 (Tas):

employer means a person who pays or is liable to pay wages and includes:

(a) the Crown in any of its capacities; and

(b) a person taken to be an employer by or under this Act; and

(c) a public, local or municipal body or authority constituted under the law of the Commonwealth or of a State or Territory unless:

being an authority constituted under the law of the Commonwealth, it is immune from the operation of this Act.

For the Payroll Tax Act 1971 (Qld) (Schedule section 2 - Dictionary):

  • A relevant contract employer is taken to be deemed employer (section 13C),
  • the employment agent under an employment agency contract is taken to be deemed employer (section 13H).

For the Pay-roll Tax Assessment Act 2002 (WA) (section 4 - Glossary):

employer means any person who pays or is liable to pay any wages, and includes the Crown in right of the State of Western Australia and an employment agent.


An employee performs work and receives a wage in return for that work.

For the Payroll Tax Act 1971 (Qld) Persons are also taken to be employees under section 13D (relevant contract employee) and section 13I (workers under employment agency contracts).

In WA relevant contract provisions do not apply.

employment agency contract

For the purpose of Payroll Tax legislation, an employment agency contract is a contract, whether formal or informal and whether express or implied, under which a person (an ‘employment agent’) procures the services of another person (a ‘service provider’) for a client of the employment agent. 

However, a contract is not an employment agency contract for the purposes of this legislation if it is, or results in the creation of, a contract of employment between the service provider and the client. 

In this definition contract includes agreement, arrangement and undertaking.

employment termination payment

Employment termination payment means,

  • an employment termination payment, within the meaning of section 82-130 of the Income Tax Assessment Act 1997 (‘ITAA’), that would be included in the assessable income of an employee under Part 2-40 of the ITAA; 
  • a payment that would be an employment termination payment within the meaning of section 82-130 of the ITAA but for the fact that it was received later than 12 months after the termination of a person’s employment, or
  • a transitional termination payment within the of section 82-10 of the Income Tax (Transitional Provisions) Act 1997 of the Commonwealth. 

A person or 2 or more associated persons.

Exempt Rate - Motor Vehicle

The motor vehicle exempt rate is aligned with the rate determined by the Federal Commissioner of taxation for the previous financial year.

Exempt Rate - Accommodation allowance

... for the financial year concerned is– 

(a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth; or

(b) if no determination referred to in paragraph (a) is in force, the rate prescribed by the regulations.

The ATO determination for the 2021-22 financial year is TD2021/6, Table 1.

exempt wages

... wages that are declared by or under Payroll Tax legislation to be exempt wages.

exemption threshold (or just ‘threshold’)

The threshold is the value that an employer or group of employers' wages must exceed before they need to register with us for payroll tax. The threshold amounts and criteria for registration differ in each state and territory.

exercise a function

... includes perform a duty.