Part 4Exemptions

Part 4—Exemptions Division 1—Non-profit organisations 48—Non-profit organisations (1) Subject to subsection (2), wages are exempt wages if they are paid or payable by any of the following: (a) a religious institution; (b) a public benevolent institution (but not including an instrumentality of the State); (c) a non‑profit organisation having as its sole or dominant purpose a charitable purpose (but not including a school, a college, an educational institution, an educational company or an instrumentality of the State). (2) The wages must be paid or payable— (a) for work of a kind ordinarily performed in connection with the religious, public benevolent or charitable purposes of the institution or body; and (b) to a person engaged exclusively in that kind of work. (3) For the purposes of subsection (1)(c), an educational company is a company— (a) in which an educational institution has a controlling interest; and (b) that provides, promotes or supports the educational services of that institution. (4) For the purposes of subsection (3), an educational institution has a controlling interest in an educational company if— (a) members of the board of management of the company who are entitled to exercise a majority in voting power at meetings of the board of management are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the educational institution; or (b) the educational institution may (whether directly or indirectly) exercise, control the exercise of, or substantially influence the exercise of, more than 50% of the voting power attached to voting shares, or any class of voting shares, issued by the company; or (c) the educational institution has power to appoint more than 50% of the members of the board of management of the company. (5) In this section— educational institution means an entity that provides education above secondary level. Division 2—Education and training 49—Schools and educational services and training Wages are exempt wages as provided for in Division 1 of Part 3 of Schedule 2. 50—Community Development Employment Project (1) Wages are exempt wages if they are paid or payable to an Aboriginal person who is employed under an employment project. (2) An employment project is an employment project under the Community Development Employment Project funded by the Department of Employment and Workplace Relations of the Commonwealth or the Torres Strait Regional Authority. Division 3—Health services providers 51—Health services providers (1) Subject to subsection (2), wages paid or payable by an employer who provides health services otherwise than for the purpose of profit or gain are exempt wages. (2) The wages must be paid or payable to a person engaged exclusively in— (a) the provision of health services; or (b) work that is incidental to the provision of health services. (3) For the purposes of this section, health service has the meaning given in Division 2 of Part 3 of Schedule 2. 52—Division not to limit other exemptions (1) Nothing in this Division limits the application of any other Division of this Part. (2) For example, if an employer who provides health services is also a non‑profit organisation, the exemption for non‑profit organisations referred to in section 48 may still apply. Division 4—Maternity and adoption leave 53—Maternity and adoption leave (1) Wages are exempt wages if they are paid or payable to an employee in respect of— (a) maternity leave, being leave given to a female employee in connection with her pregnancy or the birth of her child (other than sick leave, recreation leave, annual leave or any similar leave); or (b) adoption leave, being leave given to an employee in connection with the adoption of a child by him or her (other than sick leave, recreation leave, annual leave or any similar leave). (2) It is immaterial whether the leave is taken during or after the pregnancy or before or after the adoption. (3) The exemption is limited to wages paid or payable in respect of a maximum of 14 weeks maternity leave in respect of any 1 pregnancy and 14 weeks adoption leave in respect of any 1 adoption. (4) In subsection (3)— (a) a reference to 14 weeks maternity leave or 14 weeks adoption leave includes a reference to an equivalent period of leave at a reduced rate of pay; and (b) a reference to wages paid or payable in respect of a period of leave is a reference to the total wages that would normally have been paid or payable for that period of leave. Example— For a part‑time employee, the exemption may apply to wages paid or payable for maternity leave or adoption leave that extends to 28 weeks at half of the part‑time rate of pay that would normally apply to the employee. (5) The exemption does not apply to any part of wages paid or payable in respect of maternity or adoption leave that comprises fringe benefits. 54—Administrative requirements for exemption (1) An employer wishing to claim an exemption under section 53 in respect of maternity leave must obtain and keep a medical certificate in respect of, or statutory declaration by, the employee— (a) stating that the employee is or was pregnant; or (b) stating that the employee has given birth and the date of birth. (2) An employer wishing to claim an exemption under section 53 in respect of adoption leave must obtain and keep a statutory declaration by the employee stating— (a) that a child has been placed in the custody of the employee pending the making of an adoption order; or (b) that an adoption order has been made or recognised in favour of the employee. Section 53 of the Taxation Administration Act 1996 requires these records to be kept for at least 5 years unless the Commissioner of State Taxation authorises earlier destruction. Division 5—Volunteer firefighters and emergency service volunteers 55—Volunteer firefighters Subject to section 57, wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was engaged as a volunteer member of a SACFS organisation within the meaning of the Fire and Emergency Services Act 2005 in responding to any situation that involved or may have involved an emergency under that Act. 56—Emergency service volunteers Subject to section 57, wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was engaged as a volunteer member of an emergency services organisation under the Fire and Emergency Services Act 2005 in responding to any situation that involved or may have involved an emergency under that Act. 57—Limitation of exemption An exemption under this Division does not apply to wages paid or payable as recreation leave, annual leave, long service leave or sick leave. Division 6—Local government 58—Councils Subject to section 59, wages are exempt wages if they are paid or payable by a council. 59—Limitation on local government exemptions An exemption under this Division does not apply to wages paid or payable for or in connection with— (a) any of the activities referred to in section 60; or (b) the construction of any buildings or works, or the installation of plant, machinery or equipment for use in or in connection with any of the activities referred to in section 60. 60—Specified activities Section 59 applies to the following activities: (a) the supply of electricity or gas; (b) water supply; (c) sewerage; (d) the conduct of— (i) abattoirs; (ii) public markets; (iii) parking stations; (iv) cemeteries or crematoria; (v) hostels; (vi) public transport; (vii) an activity prescribed by the regulations. Division 7—Other government and defence 61—State Governors Wages paid or payable by the Governor of a State are exempt wages. 62—Defence personnel Wages are exempt wages if they are paid or payable to an employee in respect of any period when he or she was on leave from employment because of being a member of— (a) the Defence Force of the Commonwealth; or (b) the armed forces of any part of the Commonwealth of Nations. 63—War Graves Commission Wages paid or payable by the Commonwealth War Graves Commission are exempt wages. Division 8—Foreign government representatives and international agencies 64—Consular and non‑diplomatic representatives Wages paid or payable to members of his or her official staff by a consular or other representative of any country in Australia (other than a diplomatic representative) are exempt wages. 65—Trade commissioners Wages paid or payable to members of his or her official staff by a Trade Commissioner representing any other part of the Commonwealth of Nations in Australia are exempt wages. 66—Australian–American Fulbright Commission Wages paid or payable by the Australian‑American Fulbright Commission are exempt wages. Division 9—Services outside Australia 66A—Wages paid or payable for or in relation to services performed in other countries Wages are exempt wages if they are paid or payable for or in relation to services performed by an employee wholly in 1 or more other countries for a continuous period of more than 6 months beginning on the day on which wages were first paid or payable to that employee for the services so performed.