The recent Court of Appeal decision against Uber has sent shockwaves through the gig economy and beyond. 

Uber has copped an $81 million payroll tax bill after the court found that its drivers were providing a service to Uber itself, not just to riders. That link gave the state revenue office grounds to apply payroll tax. 

 

what does this mean for contractors and payroll tax in other industries? 

 

Watch below as John Knight and I discuss who else might be affected and what business owners and employers should be doing to avoid any surprises from the tax man.

Prefer reading? Scroll down to learn more. 

 

 

who could be next? 

 

This isn’t just about Uber. Other industries may also be caught in the net, including: 

  • medical centres with contracted doctors, 
  • real estate agencies with contracted salespeople, or 
  • businesses relying heavily on contractors. 

In fact, anyone using contractors to deliver services should be paying attention to how contractors and payroll tax obligations are being applied. 

 

past + future obligations 

 

It’s not just about what happens next, state revenue offices can look back up to five years. 

And while this case started in NSW, similar legislation exists across Australia. Don’t be surprised if we see other states applying the same principles to contractors and payroll tax. 

 

what should business owners do? 

 

If you use contractors, now’s the time to: 

  • review your arrangements, 
  • check your contracts, and 
  • understand your risk exposure.

Every business is different, but knowing where you stand is the first step. From there, you can put a plan in place to manage the risk around contractors and payroll tax. 

 

what’s next? 

 

Given the size of the bill, Uber is expected to appeal… possibly all the way to the High Court. But until then, this decision is live, and revenue offices are already showing more interest in contractor arrangements. 

 

we’re here to help

 

If contractors are a key part of your business, it’s worth getting advice tailored to your circumstances. Feel free to reach out to us at oneplace@businessdepot.com.au or give us a buzz on 1300 BDEPOT.

 

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