SKG Cleaning Services Pty Ltd v Chief Commissioner of State Revenue

[2026] NSWCA 122

NSW Court of Appeal

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Interrogate

Catchwords

1. TAXES AND DUTIES — payroll tax — whether contracts for the provision of cleaning services are employment agency contracts — whether services provided “in and for” the client’s business — consideration of significance of degree to which the client controls the way in which the activities are performed by the service provider — appeal dismissed

Quick Take

The Court of Appeal held that contracts for the provision of routine commercial cleaning services were employment agency contracts under s 37 of the Payroll Tax Act 2007 (NSW), attracting payroll tax liability. The Court rejected the appellants' contention that the critical question was whether the client had contractual control over how the cleaning work was performed, holding instead that the relevant inquiry is the closeness of the connection between the services provided and the ordinary conduct of the client's business — in particular, whether the activities would normally be expected to be undertaken by the client's own employees. The Court confirmed that while the degree of client control is a relevant factor, it is not determinative, and that routine, regular cleaning of business premises will typically satisfy the 'in and for' the client's business test.