At ENTECH CX heard case after case of production firms complaining that they KNEW other firms were NOT paying 9% super for casual contractor crews. One larger production firm are telling contractors they are not entitled, and routinely charging 9% less for labour.
Here’s the GOOD / BAD news: ALL CONTRACTORS are REQUIRED TO BE PAID superannuation.
Yes you read this right. And HAVE BEEN, for a long time.
The threshold is $400 a month. Having an ABN does NOT exempt a contractor. 99% of Australian freelance crew have an ABN, submit an invoice, and get paid a gross amount. They then arrange their own tax. But they are still entitled to workers compensation AND superannuation.
PAYG CRACKDOWN UNDERWAY
The Tax Office is now also targeting contractors who really are employees. The ‘sham contracting’ provisions are now tighter. In a series of test audits of 1,100 business, HALF had wrongly treated workers as contractors. Now the Tax Office will audit employers FOLLOWING COMPLAINTS from workers, especially smaller firms. Sich as lighting or sound production suppliers.
This goes beyond just the 9% super that casual crew are being ripped off for. The Tax Office has in a series of test cases awarded annual leave entitlements to contractors. Here is their ONLINE TEST TOOL page.
A 25% penalty can apply to unpaid payroll tax, and unpaid PAYG attracts an $1,100 penalty.
Call the Tex Evasion Referral Number on 1800 060 062. Or, you can make an appointment for an interview by phoning the tax office on 13 28 61.