The Ralph Report concluded that another $500 million of revenue would be available to government if individuals within the tax system as contractors, were taxed as if they were employees. The competing stress of outsourcing, driven by employers seeking severally to avoid union regulation of work conditions, notice, severance pay, state payroll taxes, superannuation surcharge and other labour on-costs, was matched by such contractors wishing to reduce their tax liability by means of deductible expenses. Against that background, the Australian Taxation Office is charged with the enforcement of legislation designed to achieve that aim.
This paper looks at the PSI after 10 years of operation and considers the rules and:
- how are they being applied?
- what are the traps to watch out for?
- the likely impact of the Cameron case
- what else have the courts said?