ATO issues tax guidance for home builders on determining status of workers and warns that many businesses still getting things wrong

The Australian Tax Office (ATO) has issued specific guidance to builders to ensure they correctly identify workers as either employees or contractors, which has implications for tax and super contributions.

The guidelines are included the ATO's new 'Employee or contractor' homepage, which was launched this week by tax commissioner Michael D'Ascenzo at this week’s National Small Business Summit in Melbourne.

It includes general advice for all businesses to help determine whether a worker is an employees or a contractor as well as an employer/contractor decision tool for the building and construction industry and a detailed guide providing information about the six factors builders need to consider concerning the way their working arrangements are set up.

The guide includes industry-specific information, examples and scenarios.

“We want to make sure businesses are aware of the tax and super implications of the working arrangements they set up. Recent visits to discuss contractor arrangements with businesses show a significant number of them do get it wrong. These mistakes can prove costly for the business," says D'Ascenzo as part of general advice for employers.

"The new employee or contractor homepage offers a comprehensive range of new information which has been developed to help address areas of confusion and highlight common reasons businesses get the employee or contractor decision wrong."

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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