Payroll tax guide – Contractor exemptions
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  1. Payroll tax guide – Contractor exemptions
  2. Services ancillary to the supply
    of goods
  3. Services not ordinarily required
    by your business
  4. Services required for 180 days or
    less in a financial year
  5. Services provided for 90 days or
    less in a financial year
  6. Services provided by a contractor
    to the public during the financial year
  7. Services performed by 2 or
    more people
  8. Services for the conveyance of goods provided by an owner driver

8. Services for the conveyance of goods provided by an owner driver

This exemption applies when the contractor supplies services solely for, or ancillary to, the conveyance of goods by means of a vehicle provided by the contractor.

Services are ancillary to the conveyance of goods if they are part of the work required to undertake the conveyance.

Such ancillary services include driving the vehicle to pick up the goods, loading and unloading the vehicle and other similar tasks.

The vehicle provided by the contractor must not be owned or leased by the employer and the employer must not contribute to the capital or running expenses of the vehicle.

See section 32(2)(d) of the Payroll Tax Act 2007 (PTA).

For more details:

Examples

Exemption applies

A supermarket engages a contractor on a full-time basis to pick up stock from its warehouse and deliver it to its retail outlets.

The contractor supplies the truck used to transport the stock.

The owner-driver exemption applies.

Exemption does not apply

A whitegoods business contracts with couriers to deliver fridges and other whitegoods to its customers from a warehouse.

The whitegoods business owns and maintains the vehicles and engages the couriers only to drive their vehicles and make deliveries.

This exemption does not apply because the vehicles are not provided by the contractor.