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Vaccination Incentives provided to Employees

If you’ve provided incentives or rewards to your employees for getting their COVID-19 vaccination or booster dose, it’s important to understand what your tax and super obligations are.

Incentives and rewards may include:

  • cash payments
  • paid leave
  • transport to and from the vaccination
  • non-cash gifts – such as vouchers and gift cards.

If you’ve provided your employees with a cash payment, you must:

  • include the payment in your employee’s salary and wages
  • withhold tax from the payment amount under pay as you go (PAYG) withholding
  • include the amount in your employee’s ordinary time earnings – that you use to work out your super contributions for the employee.

If you’ve provided non-cash benefits, you may have to pay fringe benefits tax on them, unless an exemption applies.

To view further detail from the ATO, click HERE

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