Handbook

The provision of personal services for payment is a major economic activity in Australia, and such services are not always provided under the traditional employment contract. Indeed, there are significant advantages to contracting parties under various regimes (both tax and non-tax) for the parties to avoid their services relationship being one of employment. This course examines the taxation treatment of employee remuneration and closely analogous remuneration situations under various Australian taxation regimes. Central to the operation of many of these regimes is the presence of an employer/employee relationship, which is often contrasted with the principal/independent contractor relationship. Often, the latter relationship is not caught by the main taxation regimes. Remuneration for services also is often provided in non-cash form. This course examines all the key Australian tax regimes that apply to employee remuneration and situations closely analogous to employee remuneration. While the main focus is the various regimes under the federal income tax (e.g. employment termination payments, employee share schemes), the following are also covered: state payroll tax obligations of employers, superannuation guarantee obligations of employers and fringe benefits tax. In addition, there is also a focus on tax collection and remittance obligations of employers under the PAYG regime. Under the income tax, the course also examines the treatment of personal services income in the context of attempts to alienate such income (and reduce tax) through use of an interposed entity.