The State Revenue Authorities are renewing their focus on taxpayers compliance with the contractor provisions, particularly those operating under the tenancy/agency model as was seen in the Optical Superstore Pty Ltd case in Victoria.
Distinguishing an 'employee v contractor' is certainly one of the more challenging areas of indirect tax with each tax having its unique factors, tests and exemptions. This article summarises the law in each jurisdication and unveils the costly consequences of an incorrect classification.