Payroll tax on employment agents with government clients

If you pay an employment agency worker for their services to an Australian Government department, you must include this payment as taxable wages in your payroll tax return.

If you pay an employment agency worker for their services to a Queensland hospital and health service or a Queensland Government department, you do not need to declare this payment as taxable wages in your payroll tax return, unless the worker is performing services for a commercialised business unit. You must obtain a declaration from your client if you wish to claim this exemption.

Wages for workers on-hired to local government (councils) are taxable if the service relates to certain activities.

Read the public ruling on employment agency contracts for workers on-hired to government (PTA028) for more information.

Also consider…

• Read about labour-hire arrangements.
• Find a list of taxable wages.