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 - or
- payrolltax@treasury.qld.gov.au.
You should also deduct GST before calculating payroll tax.
Type of contractor | Deduction from gross payment |
---|---|
Architects | 5% |
Blind fitters | 25% |
Bricklayers | 30% |
Building supervisors (who provide their own vehicles and inspect more than 6 sites per week) | 25% |
Cabinet makers, kitchen fitters | 30% |
Carpenters | 25% |
Carpet layers | 25% |
Computer programmers | 5% |
Draftspersons | 5% |
Electricians | 25% |
Engineers | 5% |
Fencing contractors | 25% |
Painters (who provide their own paint) | 30% |
Painters (who do not provide their own paint) | 15% |
Plumbers | 25% |
Resilient floor layers, vinyl layers | 37% |
Roof tilers | 25% |
Tree fellers | 25% |
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).
Also consider…
- Use our interactive help as a guide to determine whether contractor provisions apply.
Last updated: 28 November 2023