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 Queensland Revenue Office in writing for advice at:
- Queensland Revenue Office
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.