Relevant contracts and payroll tax
You may have to pay payroll tax on payments to contractors engaged in relevant contracts.
For payroll tax purposes, a 'relevant contract' is any kind of arrangement where you:
- supply services
- are supplied with services
- re-supply goods.
Re-supply means supplying goods to someone else who performs a service in relation to those goods and gives them back:
- in an altered form
- as other goods that incorporate them.
Relevant contracts are taxable unless an exemption applies.
If the contractor payments are taxable, you may claim an approved deduction from your taxable wages if the contractor provided materials and equipment.
Before you consider whether you are paying amounts under a relevant contract, look at whether the:
- person providing services is your employee
- person's services are provided to you by an employment agent.
If you are satisfied that neither of these apply, you can then look at whether a relevant contract exists.
Use this flowchart to help you decide how much of your payments, if any, are subject to payroll tax.
Also consider...
- Use our contractor interactive help as a guide to determine whether contractor provisions apply.
- Last reviewed: 17 Nov 2021
- Last updated: 2 Dec 2021
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Events
- Introduction to payroll tax in Queensland 24/05/2022
- Preparing for End of Financial Year (QSBM 2022) 24/05/2022
Contact
Queensland Revenue Office
- Call 1300 300 734 (Australia) or
+61 7 3179 2500 (overseas) - Send an email using our online enquiry form.