Payroll Tax Definitions

Some of the terms used on this site are described below. These apply to the harmonised areas within Australian states and territories (unless indicated). They are provided for general information only. To view a description, select the letter your term begins with and then scroll through the listed definitions. For a more definitive definition, please refer to the indicated legislation or the Payroll Tax legilsation applicable in the state or territory you are interested in.

If a term is not listed please advise us using the Feedback facility at the top of the page.

Term Definition
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. 
entity

A person or 2 or more associated persons.

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 2013 – 2014 financial year is TD2013/16, Table 1.

Exempt Rate - Motor Vehicle allowance

... for a financial year is the rate prescribed by the regulations under section 28.25 of the ITAA for calculating a deduction for car expenses for a large car using the ‘cents per kilometre method’ in the financial year immediately preceding the financial year in which the allowance is paid or payable.

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. 

exercise a function

... includes perform a duty.

FBT taxable amount

Payments which are liable as a fringe benefit for fringe benefits tax are also considered to be taxable wages for payroll tax returns.

FBTA Act

...the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth.

final liability

In a final period, the difference between the amount of payroll tax an employer has to pay in that period and the sum of the amounts they paid in periodic returns during that period is their final liability.

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