Record keeping for contractor exemptions

If you claim one of the 9 exemptions on payments to contractors, you must keep accurate records to substantiate your eligibility.

We may request these records for a payroll tax review or investigation, so they must be:

  • legible
  • accessible
  • retained at the time the exemption is claimed
  • kept for at least 5 years unless we advise otherwise.

Examples of records and evidence include:

  • contract or sub-contractor agreements
  • scope of works documentation (e.g. work or purchase order)
  • tax invoices from the contractor that demonstrate the exemption claimed
  • accounting records of payments made to a contractor
  • general ledger summaries
  • contractor payment summary
  • timesheets
  • details of the contractors you engage, including their ABN, contact details, business website address and any other published advertising material
  • attendance records for the days on which contractors attended your business premises or work site
  • WorkCover Queensland (or interjurisdictional-equivalent) policy records.


Also consider…