Payroll tax exemptions for charities
Charitable institutions registered under the Taxation Administration Act 2001 may be exempt from payroll tax in particular circumstances.
Once you have registered with us as a charitable institution, we will contact you about the exemption.
Payroll tax exemptions apply to wages paid or payable by a registered charitable institution to a person who is engaged exclusively in work for:
- your charitable institution for a 'qualifying exempt purpose'
- another charitable institution that is either a hospital or 'non-tertiary educational institution'. To claim an exemption, the employee must be doing the kind of work usually performed by a hospital or non-tertiary educational institution.
The Australian Government JobKeeper payment is not liable for Queensland payroll tax.
Definition of qualifying exempt purpose
A qualifying exempt purpose means:
- religious activities
- educational purposes (including running a kindergarten, but excluding a university or university college)
- public benevolent purposes
- caring for sick, aged, infirm, afflicted or incorrigible people
- relief of poverty
- caring full-time for children by providing for their general wellbeing and providing them with food, clothing and shelter
- another charitable purpose or promotion of the public good
- providing a residence to a minister or member(s) of a religious order conducting a previously listed activity.
Definition of non-tertiary educational institutions
A non-tertiary educational institution is not operated by or on behalf of the state and has one or more of the following as its primary purpose or pursuit:
- the education of students in primary or secondary schools, or both
- the conduct of a rural training school
- the conduct of a kindergarten or preschool.