• 43 Total salary and wage expenses

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    Show at L the total salary, wages and other labour costs actually paid or payable to people employed in the trust’s business. However, exclude those costs for private domestic assistance or which form part of capital expenditure, as they are not deductible.

    You can only claim a deduction for a payment made or liability incurred by a trust to an associated person, principal, agent, related entity or associate entity if it is incurred in producing assessable income and we are satisfied that the amount is reasonable.

    These expenses include any salary and wage component shown in Cost of sales at E item 5. This includes:

    • allowances
    • bonuses
    • casual labour
    • retainers and commissions paid to people who received a retainer
    • workers’ compensation paid through the payroll
    • direct and indirect labour costs
    • directors’ fees
    • holiday pay
    • locums
    • long service leave
    • lump sum payments
    • other employee benefits
    • overtime
    • payments under an incentive or profit-sharing scheme
    • retiring allowances
    • sick pay.

    Include here and at item 44 Payments to associated persons any salary or wages paid to an associated person, principal, agent, related entity or associate entity.

    However, these expenses do not include:

    • agency fees
    • contract payments
    • sub-contract payments
    • service fees
    • superannuation
    • management fees
    • consultant fees.

    Print in the CODE box the code from table 8 that shows where you predominantly reported salary and wage expenses.

    Table 8

    Salary and wages wholly or predominantly reported in

    Code

    the expense component of Cost of sales

    C

    All other expenses

    A

    the expense component of both Cost of sales and All other expenses

    B

    neither Cost of sales nor All other expenses

    O

    Last modified: 30 Oct 2014QC 40282