What is exempt from your remuneration
The items listed on this page are exempt from the calculations when determining your rateable remuneration.
Motor vehicle allowance
A motor vehicle allowance is paid or payable to a worker for the use of their own vehicle for work purposes.
- For 2013/14, 2014/15 and 2015/16 the exempt amount is the number of business kilometres travelled multiplied by 77 cents
- For 2016/7 the exempt amount is the number of business kilometres travelled multiplied by 66 cents
After determining what is exempt (as a dollar amount) subtract it from the amount of allowance paid to the worker. Any remainder is considered to be rateable remuneration and should be included in salaries and wages.
Where an accommodation allowance extends beyond 30 continuous days, a worker must also be maintaining a personal domestic dwelling for their own use in order for the allowance to retain the exemption.
- For 2010/11 the exempt rate is $227.35 per night
- For 2011/12 the exempt rate is $238.10 per night
- For 2012/13 the exempt rate is $248.25 per night
- For 2013/14 the exempt rate is $250.85 per night
- For 2014/15 and 2015/16 the exempt rate is $253.25 per night
- For 2016/17 the exempt rate will be published once the ATO publish the relevant Taxation Determination
Any amount paid per night over the exempt rate is considered to be rateable remuneration and should be included in your determination of salaries and wages.
Apprentices or trainees
Some apprentice remuneration is exempt for WorkCover insurance purposes.
Other exemptions or payments not considered rateable
- Compensation payments to an injured worker
- Dividends paid to a shareholder – Also see Dividends and Trust Distributions
- When a partner makes a cash withdrawal of money received as an allowance
- Payments to the Construction Industry Long Service Leave Board and contributions to the Redundancy Payments Central Fund
- Government funded parental leave payments, passed on to workers by employers acting as Agents of the Government. For more information, please see the Public Ruling – Parental leave payments
- Goods and Services Tax paid or payable in relation to payments to contractors is not considered rateable remuneration.
- Termination payments (for example, payments in lieu of notice, accrued holiday pay, long service leave or severance pay) made to a worker on cessation of employment.
Note: if the person resigns and works their 'notice' period, the payment for this period is not exempt remuneration