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The ACT payroll tax changes set for 1st January 2015

ITCRA CEO, Julie Mills commented that “ITCRA Members will have mixed feelings but will be relieved the moving feast that was the date that this would commence is no longer in question.”

Mills added, “it is important to note that the Treasurer, in his address to the Assembly, made particular reference to the initial question ITCRA raised on this matter more than two years ago and specifically stated that “for recruitment companies to be exempt payroll tax for a body corporate (a Pty Ltd company) that the task must be allocated as a deliverable to a body corporate and the working director and one other must both work on the same task.”  

Mills went on to say that, “other comments made by the Treasurer with respect to the existing clause being exploited by “recruiters and contractors” was an unfair, broad brush statement – as it was ITCRA, through its advocacy group who first raised the questions around interpretation almost three years to in fact, ensure that Members understood their obligations, and could assist their contractors to do the same.”

Mills acknowledged that “an important outcome for ITCRA has been the Chain of On Hire Revenue Circular, which was released on the 1st October, after feedback from ITCRA. These changes will harmonise the ACT with all other states and territories.”  

Mills went on to say that “ITCRA believes the other exemptions in the ACT also need to be reviewed as the ambiguity of definition creates unnecessary headaches for all parties in the “Chain of on hire'”  

Mills concluded that, “ITCRA will continue to facilitate an FAQ service to the Revenue Office to assist Members and their contractors in the ACT to ensure all possible areas of “grey” are responded to – and, with an extended time to prepare, the angst will be somewhat diminished – while respecting this is a dramatic change for all parties involved.”  

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