Payroll Tax on Contractor Overruns
Definition
Outsourced procurement or rush sourcing contractors push payroll tax liability in states like NSW/VIC.
Key Findings
- Financial Impact: 4.85-6.85% on contractor payments exceeding state thresholds (AUD 1.2M NSW, typical AUD 10,000-50,000/year)
- Frequency: Annual state filings
- Root Cause: Manual contractor vs employee classification in procurement
Why This Matters
The Pitch: Maintenance companies in Australia 🇦🇺 incur AUD 4.75-6.85% payroll tax on contractor sourcing fees. Automation classifies spend correctly to avoid tax leakage.
Affected Stakeholders
HR Manager, Procurement Lead
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
AUSTRAC AML/CTF Reporting Failures
ATO BAS Lodgement Penalties
GST Input Tax Credit Losses
Unbilled Change Order Services
Client Churn from Approval Friction
Idle Equipment Downtime
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