In the Toowong Pastures' case, a company was unable to prove that a worker was not an employee according to the Superannuation Guarantee Administration Act (SGAA). As a result, the Australian Taxation Office (ATO) upheld assessments for Superannuation Guarantee Charge (SGC) in relation to this worker.
Here's what happened:
- Mr. Wheeler worked for Toowong between May 2012 and January/February 2017, with a break in between.
- When Mr. Wheeler started working, he signed a contract that said he was a contractor and not entitled to things like holiday pay or sick leave. He was responsible for his own taxes and superannuation.
- Mr. Wheeler's tasks included removing asbestos, roofing, and transporting materials for the work, and he was paid an hourly rate.
- At first, Mr. Wheeler thought he was an independent contractor. He had his own ABN and sent invoices to Toowong for the hours he worked. Later, he wanted to be treated as an employee and asked for superannuation, but Toowong refused.
- After Mr. Wheeler stopped working for Toowong, the ATO started looking into whether Toowong had paid the right amount of superannuation.
- The ATO sent questionnaires to both Mr. Wheeler and Toowong to understand their working relationship.
- In October 2017, Toowong received notices from the ATO saying they owed superannuation for Mr. Wheeler's work during certain quarters, totaling $14,924.65.
- Toowong objected to these notices, and later, they asked the Tribunal to review the ATO's decision.
If you have any questions, feel free to contact Tax Ideas Accountants & Advisers at +61 2 83181545. You can also book an appointment through our live calendar.