Registered Migration Agent No. 0742052

Definition of payroll


Payroll refers to the amount of money an employer pays in wages to their employees, in the 12 months prior to application lodgement.

Payroll expenditure includes any wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions (mandatory or otherwise) or eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State/Territory.

For the purposes of the training benchmarks, irrespective of whether they are included for payroll tax purposes or not, payments made to contractors or sub-contractors should be included as payroll expenditure if the contractor provides some labour services in fulfilling the requirements of the contract and the labour provided relates to the service provided by the applicant’s business (that is, the contractor is a bricklayer and the applicant is a construction company).

Payments made to contractors, such as an accountant or a migration agent, who provide a service to the applicant that is not directly related to the service the applicant provides to its customers should not be included as payroll expenditure.

If payments to contractors are included as payroll expenditure, any eligible training expenditure in respect of the contractors may also be counted towards meeting the benchmarks.

Additionally, payments made to overseas workers such as 457 visa holders, students and working holiday makers for labour services - whether as an employee, contractor or sub-contractor - should also be included as payroll expenditure.