SMSF Online Update — Employee v. Contractor — Friday 17 November 2023, 12–1.30 pm (AEDT)

Daniel Butler, Director of DBA Lawyers will present the SMSF Online Update with a focus on issues relating to ‘employee’ versus ‘contractor’. The Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 (FW Bill) proposes substantial reforms that will impact the key 2002 High Court decisions broadly holding that a comprehensive written agreement (CWA) determines the outcome (ie, whether a person is engaged as an employee or a contractor). Dan’s presentation will include:

• The proposed reversal in the FW Bill to the ‘multi-factorial’ test (in contrast to having a CWA)
• The latest ATO materials and cases on employee v. contractor re: PAYG and SG
• The SG impact of s 12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth) where the payment is ‘wholly or principally for the labour of the person’
• Payroll tax on contractor developments – especially for medical and like clinics
• What advisers need to be aware and potential flow on implications for businesses, SMSFs, employees and contractors
• More …

Every adviser needs to be aware of the above issues to provide appropriate advice on tax, super and related issues for their clients whether they are a business owner or an employee (or perhaps somewhere in the grey zone?). There are many ‘contractor’ arrangements that result in advisers being exposed to substantial tax, SG and liability risks as they are not aware of the myriad of changes. Dan works through the relevant law, various cases/ATO materials and provides practical guidance to minimise risk.