Issued by Revenue NSW commissioner Cullen Smythe on Monday, the new guidance notes that the amount of top-up payment made by an employer will be exempt from payroll tax.
Top-up payments are necessary when ordinary wages are less than the JobKeeper amount.
However, other amounts such as employer superannuation contributions, fringe benefits and employee share scheme interests are not entitled to an exemption.
The practice note also states that JobKeeper payments made to employees who have been stood down will be wholly exempt from payroll tax.
However, wages paid to employees that are greater than a JobKeeper subsidy for a fortnight will see the entire payment liable to payroll tax.
Finally, if an employer receives JobKeeper but was ultimately not entitled to the wage subsidy program, the whole payment will be liable to payroll tax.
Revenue NSW notes that the latest guidance is effective retrospectively from 30 March 2020. JobKeeper comes to its legislated end on 28 March 2021.
View the Revenue NSW practice note here.