Payroll Tax Exclusion for Contractors

Revenue ruling PTA-021v2 has been published following public consultation. It deals with the payroll tax exclusion for contractors who ordinarily provide services to the public and addresses these issues:

  • Certain contractors are deemed to be employees, and payments to them are deemed to be taxable wages.
  • Certain contractors are not deemed to be employees and payments to them are not deemed to be taxable wages if the Commissioner of State Revenue is satisfied that the contractors ordinarily perform services of the same kind to the public generally in the relevant financial year.

This ruling outlines how the Commissioner makes such a determination and is harmonised with the other payroll tax jurisdictions.

Revenue ruling PTA-021v2 replaces Revenue Ruling PTA-021, which was withdrawn following the decision in Nationwide Towing & Transport Pty Ltd v Commissioner of State Revenue.