On this page
- Salaries and wages
- Fringe benefits
- Other inclusions
Some payments to workers are not part of your payroll, but they must still be included in your calculation of rateable remuneration.
Your 'declaration of rateable remuneration' form should include:
A. Salaries and wages
- Gross pay before tax
- Annual leave payments (including leave loading)
- Long service leave
- Paid parental leave, when funded and paid by an employer – Government funded parental leave is not rateable
- Make-up pay
- Back pay
- Directors' fees and all remuneration to directors or members of a governing body of a company
- Fees for work performed by a worker or deemed worker
- Contract payments for labour only services
- Payment to contractors who are, or who supply, workers
- Note: Goods and Services Tax (GST) paid or payable in relation to payments to contractors is not considered rateable remuneration. Learn more abour determining if contractors are deemed workers and if payments are rateable.
C. Fringe benefits
WorkSafe uses the Australian Tax Office (ATO) definition of items that are taxable fringe benefits and the ATO fringe benefts tax year – 1 April to 31 March. You only need to declare the taxable value of fringe benefits that applies to Victorian workers.
Calculating your fringe benefits
Most employers' rateable fringe benefits will be determined by adding together the taxable value of Victorian Type 1 and Type 2 fringe benefits then applying a gross up factor – currently 1.9608.
The gross up factor increased each year until 2014/15 and now aligns with the ATO's lower gross up rate.
|Year||Gross up rate|
*This is a change to the previously notified gross up rate. This rate reflects the Type 2 lower gross up rate for the FBT year ending 31 March 2015 as published by the ATO.
If you have a fringe benefits tax exemption only the taxable fringe benefits you declare to the ATO are considered rateable for WorkSafe premium purposes. This is the 'aggregate non-exempt amount'. Employers covered by these sections include:
- public and not-for-profit hospitals
- public ambulance services
- public benevolent institutions
- health promotion charities.
If you don't have fringe benefits to report to the ATO you'll have no fringe benefits to declare as rateable remuneration to WorkSafe.
Many employers pay a higher amount of superannuation than the law requires. It's necessary to include superannuation in the calculation of your remuneration, as this differs between employers.
Superannuation contributions include any contributions made by an employer to:
- a superannuation fund or scheme
- a superannuation guarantee charge
- any other form of superannuation provident or retirement fund
- defined benefit funds as required by actuarial determinations.
- Commission to insurance or part-time canvasser or collector
- Payroll tax: If you're also registered for payroll tax, there are a number of differences between WorkSafe's definition of 'remuneration' and 'wages' used for payroll tax purposes. More information is available from the State Revenue Office
- Workers in other states or territories: If you have workers that work in more than one state or territory the interstate workers guideline can provide you with advice.