New Tax Rules For Contractors

Date: 5th February 2018

From 1 April 2017, there are several changes to tax rates and forms for contractors.

There are new guidelines for employers, labour hire firms and recruitment companies, as well as for contractors. You can find the new forms and details here.

Contractors & witthholding tax

From 1 April 2017, Contractors can choose their own withholding tax rate, subject to a minimum of 10%. We stress it will be in the contractor’s interest to get the tax rate right. Contractors who aren’t currently subject to withholding tax rules will also be able to elect into this system, with the payer’s agreement.

Labour Hire Firms or recruitment companies whose staff are charged out to clients need to note new requirements.

Further information

Check out new details on Labour Hire Services here.

Need to chat this through? Give Scott or Wayne a call today.

 



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