As an employer in the meat processing industry, you must meet your payroll tax obligations.
In the meat processing industry some businesses do not declare their contractor payments and group members, resulting in significant payroll tax liabilities.
Labour hire firms are often engaged to supply workers to carry out de-boning, filleting and other related services. Typical arrangements include:
Under the employment agency provisions, the labour-hire firm closest to your business is usually considered an employment agency.
If a labour-hire firm is considered an employment agency, they are:
If a labour-hire firm is an employment agency, your business:
For more information to help decide on whether particular arrangements constitute an employment agency contract, read Commissioner’s Practice Note CPN 005.
Meat production involves tasks like farming, transporting, processing, packaging, and wholesale and retail distribution, and it’s rare that a single business will carry out all these tasks. Which means:
If you do not follow the grouping provisions, you may:
The meat processing industry is a large employer of apprentices and trainees. Common vocational training in the industry covers food processing, process manufacturing, and meat processing at Certificate 3 and 4 levels.
All wages, including superannuation, allowances and fringe benefits, paid to apprentices and new entrant trainees are liable for payroll tax. You might be able to claim a rebate on their wages if they’re recognised as ‘new entrant trainees’ by the NSW Department of Industry (NSW DOI).
Not all trainees are eligible for the rebate. Find out more about apprentices and trainees.
Businesses who hire apprentices and trainees can make the following errors:
The payroll tax anti-avoidance provisions apply where an arrangement reduces or avoids liability for payroll tax. There does not need to be proof the arrangement was intentional. What matters is the effect the arrangement has on the payroll tax liability.
We examine the facts and circumstances of your business to work out whether to apply the provisions.
We disregard any arrangements, including contracts, when the payroll tax anti-avoidance provisions apply. Your business is then considered an employer and all payments are taxable wages. You’ll be given a notice outlining the details.
You should conduct an internal review of your business to determine the correct payroll tax treatment of payments made to all workers.
If your taxable wages exceed the monthly payroll tax threshold in the current financial year, or the last four financial years, you must register for payroll tax.
If you have not declared all liable amounts in your monthly payroll tax return for the current financial year, include these additional amounts in your annual reconciliation return. This is due on 28 July each year.
If you did not declare all liable amounts in previous financial years, contact us to make a voluntary disclosure. Voluntary disclosures attract a reduced level of penalty tax compared to cases where we identify the understatement.
If you have a question about the meat processing industry and cannot find the answer on this website, contact us.