COVID-19 vaccination incentive – tax and super obligations

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 withholding
• include the amount in your employee’s ordinary time earnings. This is for the purpose of determining your super contributions for your employee.

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

Remember, we are here to help you with your tax. Contact us on 0481 953 556 or email us at service@protaxaccounts.com.au to find out more.

Source: ato.gov.au.2021. Rewarded staff for getting their COVID-19 vax?. Link available here.