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.

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Term Definition

A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth except that it includes notional GST of the kind for which payments may be made under Part 3 of the National Taxation Reform (Commonwealth-State Relations) Act 1999 by a person that is a State entity within the meaning of that Act.

indirect interest

An entity has an indirect interest in a corporation if the corporation is linked to another corporation (the directly controlled corporation) in which the entity has a direct interest.

A corporation is linked to a directly controlled corporation if the corporation is part of a chain of corporations: 

(a) that starts with the directly controlled corporation, and 

(b) in which a link in the chain is formed if a corporation has a direct interest in the next corporation in the chain.


A cheque, bill of exchange, promissory note, money order and postal order issued by a post office.


Income Tax Assessment Act 1936 of the Commonwealth

labour hire arrangement

An arrangement where a person (the employment agent) contracts with another (the client) for the provision of labour where there is no agreement between the worker and the client.


The person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company.

locomotion allowance

A fixed amount motor vehicle allowance paid to a real estate sales person.

make-up pay

If an employee receives a workers’ compensation payment that is less than their normal wages, the amount that an employer pays to make up the difference is called ‘make-up’ pay. This is a taxable amount. (referred to as top-up payments in WA.)

maternity leave

Maternity leave is leave given to a female employee in connection with her pregnancy or the birth of a child.


the month of January, February, March, April, May, June, July, August, September, October, November and December.