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Exempt employers

Non-profit organisations

Wages are exempt wages if they are paid or payable by any of the following institutions/bodies, but only for work of a kind normally performed in connection with the religious, charitable, benevolent, philanthropic or patriotic purposes of the institution/body and to a person engaged exclusively in that kind of work.

The institutions/bodies are as follows:

Continuation of existing exemptions

Religious institutions, public benevolent institutions, non-profit and charitable organisations that are, or would be exempt, under the Pay-roll Tax Act 1971 as at 30 June 2007 will continue to be subject to the provisions of that Act unless they alter their constitution in respect of their charitable or equivalent objects after 30 June 2007.

As a result only such institutions that are formed after 30 June 2007 or organisations that alter their constitution in relation to their charitable objects may be subject to the Payroll Tax Act 2007.

Education and training

Schools and colleges

Wages are exempt if they are paid or payable by any private, non-profit school that provides education at the secondary level and below. Wages paid to employees in NSW public schools, technical colleges or universities are not exempt.

Non profit group apprenticeship and traineeship schemes

Wages, including superannuation, allowances and fringe benefits, are exempt wages if they are paid to an employee who is employed in accordance with a non-profit group apprenticeship or traineeship scheme approved by the Director-General of the Department of Education and Training.

Community Development Employment Project

Wages paid to Aboriginal persons employed under a Community Development Employment Project funded by the Department of Employment and Workplace Relations of the Commonwealth or the Torres Strait Regional Authority are exempt.

Health care service providers

Wages paid or payable to persons engaged exclusively in health care provision for health care service providers are exempt, if the work is of a kind normally performed in connection with the conduct of the health care service provider.

A health care service provider is

Maternity and adoption leave

Wages are exempt wages if they are paid or payable to an employee in respect of:

other than sick leave, recreation leave, annual leave or any similar leave or any part of wages paid or payable in respect of maternity or adoption leave that comprises fringe benefits. Medical records or a statutory declaration will be required for this exemption.

Volunteer firefighters and emergency service volunteers

Volunteer firefighters

Wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was taking part in bushfire fighting activities as a volunteer member of a rural fire brigade under the Rural Fires Act 1997.

Emergency service volunteers

Wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was engaging in emergency operations as a volunteer member of an emergency services organisation under the State Emergency and Rescue Management Act 1989.

An exemption does not apply to wages paid or payable as recreation leave, annual leave, long service leave or sick leave.

Local government

Local and county councils

Wages are exempt wages if they are paid or payable by:

within the meaning of the Local Government Act 1993.

An exemption does not apply to wages paid or payable for or in connection with:

Local government business entities

Wages are exempt wages if they are paid or payable:

The written arrangement referred to in subsection (b) must include a provision for the payment by the subsidiary to the council of an amount approximately equivalent to the amount of tax that would be payable by the subsidiary under this Act but for the exemption.

Other government and defence

Governor of a State

Wages paid or payable by the Governor of a State are exempt wages.

Defence personnel

Wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was on leave from employment because of being a member of:

War Graves Commission

Wages paid or payable by the Commonwealth War Graves Commission are exempt wages.

Foreign government representatives and international agencies

Wages paid or payable by