Issues in tax administration of entertainers
The Tax Institute writes to the Australian Taxation Office (ATO) to highlight some key areas of concern regarding the administration of the superannuation guarantee charge as it relates to the engagement of performers, entertainers and other service providers. We consider that the ongoing needs of taxpayers and their advisers in this area would greatly benefit from ATO guidance and support.
The concerns raised in our submission are based on feedback from our National Fringe Benefits Tax and Employment Taxes Technical Committee, with input from our National Superannuation Technical Committee. These Committees include legal professionals, tax agents, and other practitioners who manage these issues for their clients and engage with the ATO on their clients’ behalf.
There is considerable uncertainty and a general lack of awareness regarding the operation of subsection 12(8) of the Superannuation Guarantee Administration Act 1992 (Cth) (SGAA). Our overarching recommendation is that the ATO provide guidance to help clarify the operation of this provision in some practical and commonplace scenarios. Our detailed submission is contained in Appendix A.