Exempt leave

Maternity and paternity leave are exempt from payroll tax for a maximum equivalent of 14 weeks full pay (both part time or full time) or 28 weeks half pay for a broken or continuous period.

The leave must be in connection with the pregnancy and can be taken before or after the child’s birth.

Keep records of:

• medical certificates
• statutory declarations relating to the pregnancy or date of birth.

See Public Ruling PTA012—Exemption for parental and adoption leave pay for more information. 

Adoption leave is exempt from payroll tax for a maximum equivalent of 14 weeks on full pay or 28 weeks half pay (full time and part time). This can be taken before or after the adoption.

For your records, the employee should provide you with a statutory declaration that the child has been placed in their custody and that an adoption order has been made (or is coming).

See Public Ruling PTA012—Exemption for parental and adoption leave pay for more information. 

From 14 October 2010, surrogacy leave is exempt from payroll tax for a maximum equivalent of 14 weeks on full pay or 28 weeks half pay (full time and part time). This can be taken before or after the child starts living with the employee under a surrogacy arrangement. See the Surrogacy Act 2010 for more information.

For your records, the employee should provide you with a statutory declaration that the child is living with the employee under the surrogacy arrangement.

An exemption applies to wages you pay an employee who is on leave volunteering for:

• fire fighting activities in a rural fire brigade, including training and prevention procedures under the Fire and Rescue Service Act 1990
• the State Emergency Service, or another emergency service unit under the Disaster Management Act 2003
• functions as an honorary ambulance officer under the Ambulance Service Act 1991.

 

If an employee is on leave to serve in the defence force, wages you pay them in that time are exempt.