Payroll tax on non-cash benefits

Payments to employees in forms other than cash, known as non-cash benefits, may be treated as wages for payroll tax purposes.

You must include these benefits if they form taxable wages.

Valuing non-cash benefits

For the purposes of payroll tax, the value of non-cash benefits (other than fringe benefits under the Fringe Benefits Tax Assessment Act 1986 (Cwlth)) is the higher of the following:

• the amount agreed under arrangements between the employer and employee
• the amount attributed by the employer with regard to the arrangements between the employer and employee
• the amount worked out by the Commissioner of State Revenue.

Evidence of value

You must give evidence of the value of the taxable wages if we ask for it. We will specify what evidence we need based on the type of benefit.

If we are not satisfied with the evidence provided, we may appoint a person to value the taxable wages. If the value stated by that person is more than the value you have stated, we may claim all or part of the valuation costs from you.

Also consider…

• Learn more about taxable wages for payroll tax.