Relevant Contractor Payroll Tax Provisions Extended To Financial Services

In a previous article we discussed how the relevant contractor provisions in payroll tax legislation have been interpreted across the nation to deem contractors to be employees for payroll tax purposes unless exemptions apply – and critically the breadth of those provisions. A recent case in the NSW Supreme Court reaffirms what we shared then and elaborates on some of the principles.

Mortgage aggregators are liable for payroll tax on mortgage brokers' commissions

In the recent case of Loan Market Group Pty Ltd v Chief Commissioner of State Revenue [2024] NSWSC 390 (Loan Market Group), the NSW Supreme Court held that mortgage brokers were deemed employees under the relevant contractor provisions. The Court also classified a mortgage aggregator as an employer who was liable for payroll tax on commissions paid to mortgage brokers.