Webinar 3: Payroll Tax Contractor Provisions
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Webinar 3:
Payroll Tax Contractor Provisions
Payroll Tax Webinars
Webinar One Understanding the basics –what it is, how it works
Webinar Two Allowances, FBT, exemptions and rebates
Webinar Three Contractors
Webinar Four Groupings
Agenda
• Employee v Contractor
• Contractor provisions
Employee V Contractor
Totality of the relationship
Formation/terms of Contract
Control
Leave entitlements
Delegation Risk
Integration
Tools, materials, equipment
Super
PTA-038
Employee V Contractor
IS THE WORKER AN EMPLOYEE?
Contract include labour?
Contractor provisions irrelevant
NO
Does an exemption apply?
Payments are taxable
Payments are exempt
YES NO
YES
NO
YES
No payroll tax
Employee V Contractor - WA
PT 6.1
Subject to payroll tax
Deemed to be employee
Not assessable for payroll tax
Bona fidecontactor
PTA-019PTA-018
Contractor Provisions
Full amount paid to the contractor
GST
Approved deduction
Taxable Wages
less
less
Employee V Contractor
IS THE WORKER AN EMPLOYEE?
Contract include labour?
Contractor provisions irrelevant
NO
Does an exemption apply?
Payments are taxable
Payments are exempt
YES NO
YES
NO
YES
No payroll tax
Contractor Provisions
Owner Drivers
Insurance Agents
Door-to-door sellers
90 Days 180 Days
Engaging others Labour ancillary
Services not ordinarily required
Services rendered to the public
Three Specific Six General
Contractor ProvisionsIndustry Specific
Owner Drivers
Three Specific
Insurance Agents*
Door-to-door sellers*
PTA-007PTA-006*these exemptions do not apply in the Northern
Territory, New South Wales and Western Australia
Contractor Provisions90 days
The contractor works for a principal for no more than 90 days in a financial year
Exempt where
PTA-035v2
Contractor Provisions180 days
The services are ordinarily required for less than 180 days in a financial year
Exempt where
PTA-020
Contractor ProvisionsEngage Others
The contractor engages others (contractors or employees) to complete some or all of the work that is the object of the contract
Exempt where
PTA-023
Contractor ProvisionsLabour Ancillary
The labour is ancillary to the supply of materials and/or equipment
Exempt where
PTA-033
Contractor ProvisionsNot Ordinarily Required
The services are of a type not ordinarily required by the principals business and are performed by a person who
ordinarily performs services of that kind to the public generally.
Exempt where
PTA-022
Contractor ProvisionsDiscretion
The services are ordinarily rendered to the public generally in a financial year
Exempt where
PTA-021
Payroll Tax Webinars
Webinar One Understanding the basics –what it is, how it works
Webinar Two Allowances, FBT, exemptionsand rebates
Webinar Three Contractors
Webinar Four Groupings
Further information
payrolltax.gov.au
NSW SA VIC QLDosr.nsw.gov.au1300 139 815
revenuesa.sa.gov.au08 8204 9880
sro.vic.gov.au13 21 61
osr.qld.gov.au1300 300 734
NT TAS WA ACTtreasury.nt.gov.au
1300 305 353sro.tas.gov.au03 6166 4400
osr.wa.gov.au08 9262 1300
revenue.act.gov.au02 6207 0079
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