Seven general exemptions for a relevant contract under the Payroll Tax Act

Generally, payments under a relevant contract are taxable unless at least one of the following seven exemptions applies:

1. The contractor provides services to the one principal on no more than 90 days in a financial year.
2. The contractor engages others to do all or part of the work pursuant to the contract (subject to certain conditions being met).
3. The provision of labour is ancillary or secondary to the supply of materials or equipment by the contractor.
4. The services provided under the contract are of a type not ordinarily required in the principal's business and the contractor usually provides those services to a range of clients.
5. The services are of a type ordinarily required by the principal for less than 180 days in a financial year.
6. Payments under the contract are at a rate of $800,000 per annum or greater.
7. The Commissioner is satisfied that the contractor ordinarily renders services of the type under the contract to the public generally.

For more information see the State Revenue Office - Pay-roll Tax page