The decision tool is designed to help you (as a payer) understand whether your individual workers are employees or contractors in order to comply with your Commonwealth tax and superannuation obligations. It is not designed for situations where you enter into an agreement with a company, partnership or trust for them to provide a worker, or obtain workers through an intermediary such as a labour hire firm, or where you are a labour hire firm.
ATTENTION
This decision tool is intended to be used by the person or business who engages and pays the worker.
Once you have answered a series of questions, you will be provided a report which will give:
a decision of employee or contractor (for Commonwealth taxation and superannuation purposes) for this particular arrangement
a summary of the information you have provided
the basis of the decision, and
a summary of your Commonwealth taxation and superannuation obligations relating to the worker.
You will remain anonymous at all times. No personal information will be transmitted to the Tax Office.
the status of a worker – or class of workers – under the laws administered by the Commissioner of Taxation, and
payer Commonwealth taxation and superannuation obligations.
The tool does not provide guidance on your obligations under state and territory legislation – for example, payroll tax obligations.
Provided your answers reflect the actual circumstances of the arrangement, we will not charge you a penalty that might otherwise apply.
We have made every effort, including consultation with community groups and tax professionals, to make sure this decision tool reflects commercial practices.
Are you engaging a worker in the building and construction industry, Yes or No?
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