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Commissioner’s discretion exemption

If a contractor working for you provides similar services independently to the general public, you can apply to us for an exemption, even if the arrangement does not fit the following:

We will review the nature of the contractor’s business during that financial year and will consider various issues, including the following main factors:

  • other clients who received similar services from the contractor
  • time the contractor spent working for other businesses
  • extent and nature of the contractor’s advertising
  • nature of the contractor’s business
  • type of services provided.

The contractor must have actually provided services to the public—simply being available to provide them is not enough. For a contract to be exempt, we require evidence that these services have been provided within the relevant financial year.

You can claim an exemption without applying to us if the contractor's services are:

  • provided to 2 or more principals (or businesses) during a financial year

and

  • for an average of 10 days or less per month (excluding months in which no services are provided)

Example

A carpenter is hired by several builders throughout the year, but works for more than 90 days with one hiring business. The hiring business can apply for an exemption under the Commissioner's discretion.

To apply for the Commissioner’s discretion, you can:

  • write to us at GPO Box 2248, Brisbane Qld 4001

or

Top call centre questions

Can I have more time to pay my periodic, annual, or final payroll tax liability?

You must pay payroll tax when it is due and, as a rule, we do not grant extensions.

If you are experiencing extreme financial difficulties, contact us before the date your return or assessment is due.

Unpaid tax interest will start to accrue if a payroll tax return is lodged and paid late. Penalty tax may also apply if you do not lodge a return by the due date.

I accidentally underpaid tax in a previous periodic return. Should I adjust this in my next periodic return?

No. Notify us in writing as soon as you become aware of the error and tell us how it occurred. We will reassess your payroll tax for that period using the correct figure for your taxable wages. You should pay any amount owing as soon as possible, as unpaid tax interest will be accruing daily.

If the error was in a periodic return during a previous financial year, we will reassess your liability for that year (and/or for the particular period), using the correct figure for your taxable wages.

I overpaid payroll tax in my last periodic return. Can I claim a refund?

Yes. Claim a refund within 5 years of the date of the overpayment in writing, outlining:

  • how the overpayment occurred
  • the amount of wages included in error
  • the return period in which you overpaid tax.

If we approve the refund, we may:

  • send you a cheque
  • apply the amount to your current payroll tax or revenue liability
  • hold the amount for liability arising within 60 days.

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Last reviewed 7 August 2009

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