The Queensland Government is now in caretaker mode until after the state election. Minimal updates will be made to this site until after the election results are declared.
Payroll tax deductions on contractor payments
If you are required to pay payroll tax on contractor payments where the contractor provided materials and equipment, you may deduct an approved non-labour component from your taxable wages.
You must declare the entire payment (both labour and non-labour components) less any approved deduction as wages.
Use the approved percentages in the table below to work out the non-labour component deduction.
If a profession or trade is not listed, contact the Office of State Revenue in writing for advice at:
- Office of State Revenue
GPO Box 2248
BRISBANE QLD 4001
You should also deduct GST before calculating payroll tax.
|Type of contractor||Deduction from gross payment|
|Building supervisors (who provide their own vehicles and inspect more than 6 sites per week)||25%|
|Cabinet makers, kitchen fitters||30%|
|Painters (who provide their own paint)||30%|
|Painters (who do not provide their own paint)||15%|
|Resilient floor layers, vinyl layers||37%|
|Wall and ceiling plasterers||20%|
|Wall and floor tilers||25%|
For more information, see the following public rulings:
- Contractor deductions (PTA018)
- Contractors - labour and non-labour components (PTA019)
- GST considerations for the calculation of payroll tax liability (PTA008).
- Use our contractor interactive help as a guide to determine whether contractor provisions apply.
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