Updated ATO Guidance For Extended Definition of Employee For Superannuation Purposes (August 2024 Tax Update)

Relevant For:

Business owners, financial controllers and HR managers.

Key Points:

• The ATO has updated guidance on the definition of an ‘employee’ for superannuation purposes.
• A contract must exist where the worker personally provides services, and the contract must be primarily for labour rather than a specific result.
• Pty Ltd company contracts are generally excluded unless deemed a sham.
• Incorrect classification risks significant penalties, including Director Penalty Notices.
• Businesses may need to review contracts to ensure compliance with the updated ATO guidance.

Full Article:

The Australian Taxation Office (ATO) continues to scrutinise the distinction between employees and contractors for tax and superannuation purposes.

Recent updates to the