Payroll 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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The 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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Employment Growth for April smashes expectation
The Australian economy added 14,000 jobs in April, smashing the market expectation of 9,000.
It is an amazing figure, especially given April was an unusual month for Australian business, with the ANZAC Day holiday falling the week after Easter, leading to a three-day work week which many people took off entirely. This had the potential to affect job creation decisions.