• Exemptions, Exclusions and Rebates


    What are exempt wages?

    Exempt wages are wages that are not taxable for payroll tax purposes.

    Exempt wages include wages paid to employees on parental leave, genuine redundancy payments, and payments made to registered apprentices and trainees.

    For more information about exempt wages, please refer to the following publications:

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    Employer based exemptions

    Payroll tax exemptions are provided for the following organisations:

    How to apply for an exemption

    Apply for an exemption using our web enquiry facility below and attach a copy of your organisation’s constitution and details of the nature, aims, and objects of your organisation.

    You will be notified of the outcome once your application has been reviewed.

    Make an enquiry


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    Grouping exclusions

    If you are grouped for payroll tax purposes, the wages of all your group members are combined to determine:

    • if you are required to register for payroll tax
    • whether you are liable for payroll tax
    • the deductable amount claimed by the Designated Group Employer

    If you are a registered employer in Western Australia and part of a group, you may be eligible to apply for an exclusion from grouping from 1 July 2015. The grounds for exclusion vary according to the provisions under which the businesses constitute a group. The Commissioner can exercise discretion to exclude in the following grouping situations:

    • employees used in another business
    • commonly controlled business
    • tracing of interests in a corporation
    • small groups are subsumed into one group

    Please note, the Commissioner cannot exclude a corporation from a group if it is related to another corporation which is a member of the group.

    Before applying for an exclusion from grouping, it is highly recommended that you read the following publications:

    How to apply for a grouping exclusion

    To apply for an exclusion from grouping, please complete form FPRT2 'Application: Exclusion from Grouping' and return it to us with all relevant documentation. For exclusions considerations prior to 1 July 2012 please refer to Commissioner’s Practice PT 2 'Payroll Tax - Grouping Exclusions'.

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    Indigenous Wages Rebate

    The Payroll Tax (Indigenous Wages) Rebate is paid to employers, or grouped employers, with annual Australian taxable wages of up to $15 million, for Western Australian wages paid in the first two years of employment to new indigenous employees for whom they also receive a Commonwealth Indigenous Wages Subsidy.

    Employers should continue to lodge and pay their payroll tax returns as required. Full records of wages paid to new indigenous workers, including source documents verifying eligibility, must be maintained so employers can provide details of wages paid to new indigenous employees during the payroll tax annual reconciliation process. The rebate will be paid after the reconciliation process is completed, which is expected to be in September each year.

    To apply for a rebate please complete form FPRT5 'Declaration: Indigenous Wages'. The completed form should then be submitted as an attachment to a web enquiry - select the ‘Indigenous Wages Declaration’ sub-category.

    To qualify for this rebate, both the employer and the indigenous employee to whom the wages are paid must be eligible.

    Eligible Employer

    An employer is an eligible employer for an assessment year if they:

    • were registered during whole or part of the year. Unregistered employers liable for payroll tax must apply for registration as an employer by no later than 7 July following the close of the financial year in which the indigenous wages were paid;
    • employed an eligible employee for whole or part of the year;
    • meet the threshold requirements in subsection 7(2) of the Pay-roll Tax (Indigenous Wages) Rebate Act 2012; and
    • submit all returns and information, including Australian taxable wage details if applicable, required to perform the annual reconciliation by no later than 31 December following the end of the assessment year.

    Eligible Employee

    An employee is an eligible employee for an assessment year if the employer receives or received an indigenous wages subsidy in respect of the new employee.

    An employee is a new employee where they:

    • commenced employment with the employer on or after 1 July 2012; and
    • were not employed by that employer, or any other employer in a group of which the employer is a member, at any time before they commenced their employment with that employer.

    Payroll tax, paid in relation to the wages paid to the new employee during the 24 months commencing on the day on which the employee first commenced employment with the employer, may be eligible for the rebate.

    Please note: Eligibility requirements and related deadlines cannot be waived or extended.

    For more information and complete details about the indigenous wages rebate, please see the Pay-roll Tax (Indigenous Wages) Rebate Act 2012 and associated Regulations.

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