Victorian Repealed Acts

This legislation has been repealed.

Pay-roll Tax Act 1971 - SECT 5

Employment agents deemed to be employers of service providers

5. Employment agents deemed to be employers of service providers



(1) For the purposes of this Act-

   (a)  the employment agent under an employment agency contract is deemed to
        be an employer; and

   (b)  the person who performs work for or in relation to which services are
        supplied to the client under an employment agency contract is deemed
        to be an employee of the employment agent; and

   (c)  the following are deemed to be wages paid or payable by the employment
        agent under an employment agency contract-

   (i)  any amount paid or payable to or in relation to the service provider
        in respect of the provision of services in connection with the
        employment agency contract;

   (ii) the value of any benefits provided for or in relation to the provision
        of services in connection with the employment agency contract that
        would be a fringe benefit if provided to a person in the capacity of
        an employee;

   (iii) any payment made in relation to the service provider that would be a
        superannuation benefit if made in relation to a person in the capacity
        of an employee.

(2) An amount referred to in subsection (1)(c) paid or payable under an
employment agency contract does not include an amount in respect of any GST
payable on the supply to which the employment agency contract relates.

(3) Subsection (1)(c) does not apply to an employment agency contract to the
extent that an amount, benefit or payment referred to in that subsection would
be exempt from pay-roll tax under section 10 had the service provider been
paid by the client as an employee, if the client has given a declaration to
that effect to the employment agent.

(3A) Subsection (3) does not apply in relation to any amount, benefit or
payment that would be exempt from pay-roll tax under section 10(1)(ca) had the
service provider been paid by the client as an employee at any time before 1
July 2005.

(4) Subject to section 5A, if an employment agent under an employment agency
contract-

   (a)  by arrangement procures the services of a service provider for a
        client of the employment agent; and

   (b)  pays pay-roll tax in respect of an amount, benefit or payment that is,
        under subsection (1)(c), deemed to be wages paid or payable by the
        employment agent in respect of the provision of those services in
        connection with that contract-

no other person (including any other person engaged to procure the services of
the service provider for the employment agent's client as part of the
arrangement) is liable to pay pay-roll tax in respect of wages paid or payable
for the procurement or performance of those services by the service provider
for the client.