Payroll tax exemptions in New South Wales
New South Wales does not exempt apprentice and trainee wages. Instead, the table records a rebate that can be claimed on the wages of registered apprentices and new entrant trainees, next to exemptions for parental leave pay, duties in the Australian Defence Force, volunteer emergency work and religious, benevolent and charitable not-for-profit bodies.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
The rules in New South Wales
| What it is | Value | When it applies | Where it is set |
|---|---|---|---|
| Weeks of full-time maternity, paternity or adoption leave pay that are exempt | 14 weeks | As published on 26 August 2024 | Maternity, paternity or adoption leave |
| Wages paid by religious, benevolent and charitable not-for-profit bodies can be exempt | Yes | As published on 18 November 2024 | Employers eligible for a payroll tax exemption |
| An eligible organisation must apply for its exemption | Yes | As published on 18 November 2024 | Employers exempt from payroll tax |
| Wages for duties as a member of the Australian Defence Force are exempt | Yes | As published on 26 August 2024 | Defence personnel |
| Wages for time spent as a volunteer bushfire fighter or emergency worker are exempt | Yes | As published on 26 August 2024 | Emergency services volunteers |
| Apprentice and trainee wages are exempt | No | As published on 14 July 2025 | Treating apprentice/trainee wages as exempt instead of claiming a rebate |
| A rebate can be claimed on wages of registered apprentices and new entrant trainees | Yes | As published on 14 July 2025 | How apprentice and trainee wages are treated for payroll tax |
Each rule is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
What it means for your books
- With a rebate in place of an exemption, apprentice and trainee wages are not set aside as exempt wages. The books need to identify each registered apprentice and new entrant trainee and hold the wages paid to them, since the rebate is claimed on those wages.
- Weeks of full-time maternity, paternity or adoption leave pay are exempt, up to the number in the table. Leave records that show which kind of leave was taken, over which dates, and what was paid for it let those weeks be matched to the wages.
- Pay for duties as a member of the Australian Defence Force is exempt, as is pay for time spent as a volunteer bushfire fighter or emergency worker. Recording these payments under their own pay items, with the dates of service, keeps them apart from ordinary wages.
- An eligible religious, benevolent or charitable not-for-profit body must apply for its exemption. Keeping the application and Revenue NSW's decision with the payroll tax records shows which wages the exemption covers; whether a body is eligible is a question for Revenue NSW or your accountant.
General information
Sources
- Exempt wages and payments not liable for payroll tax
Revenue NSW. Page modified 2024-08-26 (DCTERMS.modified metadata), released 26 August 2024. Checked 16 October 2026.
© State of New South Wales through Revenue NSW Licence: Revenue NSW terms of use: copyright, State of New South Wales.
- Employers exempt from payroll tax
Revenue NSW. Page modified 2024-11-18 (DCTERMS.modified metadata), released 18 November 2024. Checked 16 October 2026.
© State of New South Wales through Revenue NSW Licence: Revenue NSW terms of use: copyright, State of New South Wales.
- Payroll tax for apprentice and trainee wages
Revenue NSW. Page modified 2025-07-14 (DCTERMS.modified metadata), released 14 July 2025. Checked 16 October 2026.
© State of New South Wales through Revenue NSW Licence: Revenue NSW terms of use: copyright, State of New South Wales.
- Payroll tax thresholds and rates
Revenue NSW. 2025-26 and 2026-27, released 1 July 2026. Checked 15 October 2026.
© State of New South Wales through Revenue NSW Licence: Revenue NSW terms of use: copyright, State of New South Wales.
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