Payroll Tax Act 1971

A relevant contract is a contract under which a person (the designated person), in the course of a business carried on by the designated person—

supplies to another person services in relation to the performance of work; or

has supplied to the designated person the services of persons in relation to the performance of work; or

gives goods to individuals for work to be performed by those individuals in respect of the goods and for the goods to be re-supplied.

However, a relevant contract does not include a contract of service or a contract under which a person (the designated person), in the course of a business carried on by the designated person—

is supplied with services in relation to the performance of work, if the services are ancillary to—

the supply of goods under the contract by the person by whom the services are supplied; or

the use of goods that are the property of the person by whom the services are supplied; or

is supplied with services in relation to the performance of work, if—

the services are of a kind not ordinarily required by the designated person and are performed or rendered by a person who ordinarily performs or renders services of that kind to the public generally; or

the services are of a kind ordinarily required by the designated person for less than 180 days in a financial year; or

the services are provided for a period that does not exceed 90 days or for periods that, in the aggregate, do not exceed 90 days in the relevant financial year and are not services—

provided by a person by whom similar services are provided to the designated person; or

in relation to the performance of work where any of the persons who perform the work also perform similar work for the designated person;

the services are supplied under a contract to which subparagraphs (i) to (iii) do not apply and the commissioner is satisfied the services are performed or rendered by a person who ordinarily performs or renders services of that kind to the public generally in the relevant financial year; or

is supplied by a person (the contractor) with services in relation to the performance of work under a contract to which paragraphs (a) and (b) do not apply, if the work to which the services relate is performed—

by 2 or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor; or

if the contractor is a partnership of 2 or more individuals—by 1 or more of the members of the partnership and 1 or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor; or

if the contractor is an individual—by the contractor and 1 or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor; or

is supplied with—

services solely for or ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them; or

services solely in relation to the procurement of persons desiring to be insured by the designated person; or

services in relation to the door-to-door sale of goods solely for domestic purposes on behalf of the designated person.

For subsection (2)(b), relevant financial year means the financial year during which the designated person is supplied with the services.

Subsection (2)(a), (b), (c) or (d) does not apply to a contract under which any additional services or work of a kind not covered by the relevant subsection is supplied or performed.

Subsection (2) does not apply if the commissioner is satisfied the contract or arrangement under which the services are supplied was entered into with an intention either directly or indirectly of avoiding the payment of tax by any person.

An employment agency contract under which services are supplied by an employment agent, or a service provider is procured by an employment agent, is not a relevant contract.