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Edited version of private advice
Authorisation Number: 1051629703570
Date of advice: 3 February 2020
Ruling
Subject: Employee/employer relationships
Question
Are you the employer of the professional service providers who utilise your facilities?
Answer
No. Having considered your circumstances and the relevant factors contained in Taxation Ruling TR 2005/16 you are not considered to be an employer of the service providers you entered into a facility agreement with.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You operate a professional services facility.
Professional service providers operate from your facility.
You enter into a facilities agreement with each service provider.
You are responsible for the provision of professional rooms, assistants, equipment, supplies, office administration systems and procedures, collection of fees from clients and other matters in relation to the operation of the facility.
As consideration for the provision of these services, you receive a management fee which is a percentage of the client fees received by each service provider.
Each service provider is paid for the professional services they personally provide to the clients.
You do not provide professional services to the clients.
Under the current computer system, you collect the client fees and bank them into a separate facility account held in your name.
Each week you calculate the management fees owing to you and remit these funds to your operating account.
The remaining funds in the facility account are remitted to each respective service provider on a weekly basis. That is, each service provider is paid weekly their client fees less their management fees.
Each service provider
· is qualified in their field of professional services
· does not provide any services to you and
· is registered for GST either personally or through a related entity
Relevant legislative provisions
Taxation Administration Act 1953 Schedule 1 Section 12-35