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Australia: Paid parental leave payments are not liable to payroll tax (Victoria)

Paid parental leave payments do not constitute wages and are therefore not liable to payroll tax.

June 18, 2024

Victoria’s State Revenue Office (SRO) has issued an updated ruling that clarifies its views on the federal government’s paid parental leave (PPL) scheme.

The updated Revenue Ruling PTA-037v2 replaces PTA-037 and states that PPL payments are commonwealth government payments that employers are asked to pay on behalf of the commonwealth government.

Therefore, the Commissioner of State Revenue is of the view that PPL payments do not constitute wages under the Payroll Tax Act 2007 and are therefore not liable to payroll tax.

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