What is the number one issue on the Tax Office’s agenda at the moment? Answer, are you a contractor or are you an employee?
The purpose of this article is not to set out the income tax, superannuation and workers compensation implications of being a contractor versus being an employee. The purpose of this article is to give a real life example of the types of issues that the Tax Office, and in fact the courts, are looking for when making their assessment of your circumstances.
A recent Administrative Appeal Tribunal (AAT) decision has held that a Trust carrying on a commercial and residential plumbing business did not meet its superannuation guarantee obligations in respect of five (5) of its plumbers that it treated as independent contractors.