Allowances for equipment and material costs
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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:
Architect
| 5%
|
Blind fitter
| 25%
|
Brick layer
| 30%
|
Building supervisor(provides their own vehicle and inspects more than 6 sites per week)
| 25%
|
Cabinet maker/ Kitchen fitters
| 30%
|
Carpenter
| 25%
|
Carpet Layer
| 25%
|
Computer Programmer
| 5%
|
Draughtsperson
| 5%
|
Electrician
| 25%
|
Engineer
| 5%
|
Fencing contractor
| 25%*
|
Painter
| 15%(if the painter does not provide the paint)
|
Painter
| 30%(if the painter provides the paint)
|
Plumber
| 25%
|
Resilient floor layers/vinyl layers
| 37%
|
Roof tiler
| 25%
|
Tree feller
| 25%
|
Wall and ceiling plasters
| 20%
|
Wall and floor tilers
| 25%
|
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.
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Excluded contracts
| Employer superannuation contributions
|