The State Revenue Office has issued a new Revenue Ruling that provides guidance in determining whether wages paid to casual workers are subject to Pay-roll Tax. It replaces an earlier ruling (PT-016) that was originally published in 1993 but that ceased to have effect in 1999.

Payments to casual employees must be declared in full for the purposes of Pay-roll Tax. The 90-day exemption for contractors does not apply to wages paid to casual employees. Casual workers who are unincorporated and who do not operate a business should generally be treated as common law employees. However, workers can only be considered to be employees if they provide their services as 'natural persons'. If workers provide services through their own company or a trust structure, they should be treated as contractors.

...back to 15 September 2005


Further information:
Revenue Rulings

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