Skip to content
Queensland Government - Queensland Revenue Office
Queensland Government - Queensland Revenue Office

Contractor deductions

Public Ruling PTA018.2
03 July 2009
Download PDF

A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.

Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.

What this ruling is about

  1. The Pay-roll Tax (Harmonisation) Amendment Act 2008 amended the Payroll Tax Act 1971 (the Payroll Tax Act) with effect from 1 July 2008 to harmonise certain aspects of Queensland’s payroll tax system with the systems of other jurisdictions.
  2. Parties to a ‘relevant contract’ are deemed to be employers and employees1 and payments made under such a contract are deemed to be wages.2 Deemed wages are subject to payroll tax under s.13F of the Payroll Tax Act.
  3. While most contracts for the provision of services come within the meaning of ‘relevant contract’ under s.13B of the Payroll Tax Act, certain types of contracts are specifically excluded from the definition of ‘relevant contract’. Where none of the exclusions apply, s.13E(5) of the Payroll Tax Act allows the Commissioner of State Revenue (the Commissioner) to decide the amount which can be deducted from the payments made under the contract.
  4. The purpose of this Public Ruling is to set out those deductions for materials and equipment for certain types of contractors and to outline the manner in which new deductions may be granted.

Ruling and explanation

  1. For the purposes of s.13E(5) of the Payroll Tax Act, the Commissioner will allow the following percentage deductions for the non-labour components where the contractor provides equipment and/or materials:
 Type of contractor Deduction from gross payments to contractor
Architects  5%
Blind fitters  25%
Bricklayers  30%
Building supervisors (who provide their own vehicles and inspect more than six 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%
  1. If a profession/trade is not listed above, a designated person (as defined in s.13B (1) of the Payroll Tax Act) may apply in writing to the Commissioner for a decision as to the appropriate deduction. Such application should include details regarding the cost of materials and equipment provided by the contractor.

Date of effect

  1. This Public Ruling takes effect from the date of issue.


David Smith
Commissioner of State Revenue
Date of issue: 3 July 2009


Public Ruling Issued Dates of effect
From To
PTA018.2 3 July 2009 3 July 2009 Current
PTA018.1 24 February 2009 1 July 2008 2 July 2009


  1. Sections 13C and 13D of the Payroll Tax Act
  2. Section 13E of the Payroll Tax Act