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.
Record keeping for contractor exemptions
If you claim one of the 9 exemptions on the payments you make to your contractors, you should keep accurate records.
These records should be easy to access and read - so that you can hand them over to us, if requested, for an audit. You must keep records for 5 years unless we advise otherwise.
If your business is selected for a payroll tax review or investigation, you will need to supply evidence to support exemptions you have claimed. It is your responsibility to substantiate an exemption claimed - it is not up to the Commissioner to disprove a claim. Examples of records you should keep include:
- the contract or sub-contractor agreement
- scope of works documentation (e.g. work or purchase order)
- tax invoices from the contractor, including a breakdown of the cost of labour and equipment
- accounting records of payments made to a contractor
- general ledger summaries
- contractor payment summary
- taxable payments annual reports (TPAR) lodged with the Australian Taxation Office (ATO)
- price lists from suppliers
- details of the contractors you engage, including their ABN, contact details, business website address and any other published advertising material
- relevant declarations from contractors and/or their employees that verify the accuracy of the exemption you have claimed
- attendance records for the days on which contractors attended your business premises or work site
- WorkCover Queensland policy records (or interjurisdictional equivalent).
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