The Commissioner for State Revenue has approved a penalty
amnesty for employers who have not included payments to contractors
in their taxable wages under the Payroll Tax Act 1971 (Qld).
The amnesty applies to payments made to contractors between 1
July 2005 to 30 June 2008.
Queensland employers are now required to include certain
contractor payments under relevant contracts in taxable wages.
A relevant contract is a contract under which a business:
supplies to another person services in relation to the
performance of work; or
has supplied to the designated person the services of persons
in relation to the performance of work; or
gives goods to individuals for work to be performed by those
individuals in respect of the goods and for the goods to be
re-supplied (section 13B(1) of the Payroll Tax Act 1971
However, there are some exclusions. For example:
the labour is ancillary to the supply or use of the goods by
the services supplied are not ordinarily required by the
principal and are rendered to the general public;
the principal ordinarily requires the services for less than
180 days in a financial year;
the services are provided for 90 days or less in the financial
the contractor provides the services to the public generally
within that financial year (as determined by the
the contractor engages other persons to fulfil the
If before 31 March 2009 an employer discloses
to the Commissioner payments to a contractor omitted from taxable
penalty tax will not be imposed on the shortfall;
unpaid tax interest on the shortfall will be halved; and
any ensuing audit will be limited to the three previous
After 31 March 2009, the Office of State Revenue will conduct an
audit program in relation to contractor payments for the previous
five financial years for those employers who have not made
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Exemptions or concessions on stamp duty could apply when contemplating the purchase or transfer of NSW real estate.
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