Fresh guidance from the ATO regarding contractors

Nathan Hamilton, Alston Kam, Daniel Dass and Dina Shrestha discuss the ATO’s draft Taxation Ruling (TR) 2022/D3 and Practical Compliance Guidance (PCG) 2022/D5 in respect of the assessment of workers as either employees or contractors.

Key takeaways Draft ruling TR 2022/23 replaces TR 2005/16 and concerns the process for determining whether an employee may be regarded as a common law employee. The changes primarily reflect the recent High Court decisions of Personnel Contracting and ZG Operations. The draft ruling is from the perspective of income tax and PAYG withholding, however it has wider application as the classification of a worker as a common law employee will give rise to the full range of employer obligations....

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Authors: Nathan Hamilton, Alston Kam,

Published Date: 19 December 2022