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

See Exemption threshold.

top-up payments

see make-up pay

unused annual leave payments

Has the same meaning as in section 83–10 of the ITAA.

unused long service leave payments

Has the same meaning as in section 83-75 of the ITAA.

vesting date for a share

The vesting date for a share is the date when any conditions which apply to granting the share have been met and the employee's legal or beneficial interest in the share cannot be rescinded. From 1 July 2011, the vesting date for a share is the earlier of either the date as defined above or the date at the end of the 7 years from the date on which the share is granted to the employee.

vesting date for an option

The vesting date for an option is the earlier of either one of two dates (and from 1 July 2011, one of the three dates). The dates are:

  • when the share to which the option relates is granted to the employee, or 
  • when the right under the option to have the relevant share transferred, allotted or vested is exercised by the employee 
  • (or, from 1 July 2011) at the end of the period of 7 years from the date on which the option is granted to the employee
voting share

The same meaning as in section 9 of the Corporations Act 2001 of the Commonwealth.


The definition of 'wages' in Payroll Tax legislation is very broad and is not restricted to wages or salaries.

The term 'wages' includes:

  • wages; 
  • remuneration; 
  • salaries; 
  • allowances; 
  • commissions; 
  • bonuses; 
  • employer (pre-tax) superannuation contributions including superannuation guarantee payments, salary sacrifice contributions, from 1 July 2007 (1 July 2009 in WA), the value of non-monetary contributions, and superannuation contributions to defined benefit funds;
  • appropriately grossed up value of fringe benefits, within the meaning of the Fringe Benefits Tax Assessment Act 1986 (Cwlth) (FBT Act); 
  • the value of shares and options granted to employees, directors, former directors and some contractors; 
  • payments to some contractors; 
  • payments by employment agencies arising from employment agency contracts;
  • remuneration paid by a company to or in relation to company directors, and employment termination payments and accrued leave.