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Changes to Payroll Tax

Liability of Payroll Tax

changes to payroll tax in tax year 2014-15Payroll Tax liability within the on-hire environment has always been surrounded by some sort of uncertainty… does the responsibility lie with the recruitment agency, the end client or the contractor?

Australian Payroll Tax Laws vary from state-to-state. All states and territories the ‘Employment Agent’ provision of the various Acts requires that the company that on-hires the contractor to the end-user client is responsible for payroll tax. 
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Increased Demand for Permanent and Contract labour

increase permanent and contract labourThe latest Pulse Survey of Hiring Intentions from the Recruitment and Consulting Services Association (RCSA) shows 61 per cent of responding RCSA members predict an increase in the demand for permanent recruitment services over the next three months. In addition, 50 per cent expect an increase for on-hire workers over the time period. 
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Fury at mooted payroll tax rise

payroll tax Businesses have reacted with fury after Treasury chief Martin Parkinson suggested the states should take more responsibility for their own revenue bases and consider extending one of the imposts companies hate most — payroll tax.

The Australian Chamber of Commerce and Industry’s chief economist Burchell Wilson urged state and territory governments to rule out extending the reach of payroll tax to small businesses.
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