Allowances for equipment and material costs
Payroll tax is only applied to the labour portion of any contracts for the performance of work. Where a contract does not distinguish between labour and other costs, the Commissioner will accept, without verification, the following percentage deductions as an allowance for materials:
Building supervisor(provides their own vehicle and inspects more than 6 sites per week)
|Cabinet maker/ Kitchen fitters||30%|
15%(if the painter does not provide the paint)
30%(if the painter provides the paint)
|Resilient floor layers/vinyl layers|
|Wall and ceiling plasters|
|Wall and floor tilers|
These percentages have been arrived at after considerable consultation with industry sources, Revenue New South Wales and the State Revenue Office Victoria.
Should an employer maintain that a lesser percentage applies to labour in a particular contract, details should be submitted for consideration on lodgement of the payroll tax return. Also, if an employer maintains that an allowance should be made for a trade not listed above, the relevant details should be submitted with the appropriate return to the Commissioner for consideration.