Accessible Page Links

Payroll tax

Useful links

Breadcrumb

'Labour ancillary to goods' exemption

A contract may be exempt from payroll tax if its basic purpose is to supply goods and the labour or services provided by the contractor is only incidental to this.

'Employee' and 'contractor' may have different meanings for payroll tax purposes from what you might expect.
Please review the meanings of employees and contractors to determine which definition applies to each employment arrangement. If the contractor has an employee/employer relationship with the principal, the contractor provisions will not apply.

Example

Black Ltd needs a crane. Orange Ltd supplies the crane under a contract.  A condition of the contract is that Black Ltd must also hire the crane operator from Orange Ltd. Amounts paid to the contractor are exempt because the supply of the crane is the principal purpose and the operator’s services are secondary.

See Public Ruling PTA033—Contractors—services ancillary to the supply of goods for more information.

Top call centre questions

Can I have more time to pay my periodic, annual, or final payroll tax liability?

You must pay payroll tax when it is due and, as a rule, we do not grant extensions.

If you are experiencing extreme financial difficulties, contact us before the date your return or assessment is due.

Unpaid tax interest will start to accrue if a payroll tax return is lodged and paid late. Penalty tax may also apply if you do not lodge a return by the due date.

I accidentally underpaid tax in a previous periodic return. Should I adjust this in my next periodic return?

No. Notify us in writing as soon as you become aware of the error and tell us how it occurred. We will reassess your payroll tax for that period using the correct figure for your taxable wages. You should pay any amount owing as soon as possible, as unpaid tax interest will be accruing daily.

If the error was in a periodic return during a previous financial year, we will reassess your liability for that year (and/or for the particular period), using the correct figure for your taxable wages.

I overpaid payroll tax in my last periodic return. Can I claim a refund?

Yes. Claim a refund within 5 years of the date of the overpayment in writing, outlining:

  • how the overpayment occurred
  • the amount of wages included in error
  • the return period in which you overpaid tax.

If we approve the refund, we may:

  • send you a cheque
  • apply the amount to your current payroll tax or revenue liability
  • hold the amount for liability arising within 60 days.

back to top

I want to ...

Helpful tools

Last reviewed 17 January 2012

Footer Links

Footer Search