Payroll Tax Act 1971

The wages liable to payroll tax and the mental health levy under this Act do not include wages paid or payable to an employee for parental leave, adoption leave, surrogacy leave or cultural parent leave.

It is immaterial whether—

the parental leave is taken during or after the pregnancy; or

the adoption leave is taken before or after the adoption; or

the surrogacy leave is taken before or after a child starts residing with the employee under a surrogacy arrangement; or

the cultural parent leave is taken before or after a cultural recognition order is made transferring the parental rights and responsibility for a child to the employee.

The exemption under subsection (1) is limited to wages paid or payable for—

not more than 14 weeks’ maternity leave for any 1 pregnancy; and

not more than 14 weeks’ paternity leave for any 1 pregnancy; and

not more than 14 weeks’ adoption leave for any 1 adoption; and

not more than 14 weeks’ surrogacy leave for any 1 surrogacy arrangement; and

not more than 14 weeks’ cultural parent leave for any 1 cultural recognition order.

A reference in subsection (3) to 14 weeks’ leave is a reference to—

for a full-time employee who takes leave on less than full pay—a period equivalent to 14 weeks’ leave on full pay; or

for a part-time employee—

if the employee takes leave on the employee’s part-time rate of pay—a period of 14 weeks’ leave on that rate of pay; or

if the employee takes leave on a rate of pay that is less than the employee’s part-time rate of pay—a period equivalent to 14 weeks’ leave on the employee’s part-time rate of pay.

An employer who claims an exemption under subsection (1) must obtain and keep as a record—

for wages paid or payable for maternity leave—a medical certificate for, or statutory declaration by, the employee stating—

the employee is or was pregnant; or

the employee has given birth and the date of birth; or

for wages paid or payable for paternity leave—a statutory declaration by the employee stating—

a female is or was pregnant with his unborn child; or

his child has been born and the date of birth; or

for wages paid or payable for adoption leave—a statutory declaration by the employee stating—

a child has been placed in the custody of the employee pending the making of an adoption order; or

that an adoption order has been made or recognised in favour of the employee; or

for wages paid or payable for surrogacy leave—a statutory declaration by the employee stating a child has started residing with the employee under a surrogacy arrangement; or

for wages paid or payable for cultural parent leave—a statutory declaration by the employee stating a child has started residing with the employee under a cultural recognition order.

The exemption under subsection (1) does not apply to wages comprising a fringe benefit under the Fringe Benefits Assessment Act.

In this section—