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.

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