A clergyman in Australia is required to pay superannuation withholdation for PAYG dues as soon as he or she reaches retirement age, beginning in July 2000. Those who work as religious practitioners who take PAYG, FBT, ABN and GST as their primary occupation are also considered employees. Payments for stipends received by diocesan employees will be withholdd from pay (PAYG deductions). Table of contents Do Religious Ministers Pay Income Tax? An organization must file tax returns as its ministers, even if they serve as employees or as self-employed persons. This includes wages, offerings, and fees for conducting marriages,baptisms, funerals, etc. How Much Tax Does A Pastor Pay? It is considered a hybrid of a self-employed worker and an employee under the traditional Labor Code when it comes to tax purposes. Tax-exempt status is usually granted to the church in most cases. Those wages do not have to be reported to income tax because the church pays the minister’s salary. Are Churches Tax Free In Australia? Yes. Australian tax law grants tax-exemption to all religious organizations. Among them are large bodies like the Anglican and Catholic churches, as well as smaller ones like Seventh Day Episcopal churches and Exclusive Bretheren […]
