On 29 April 2010 16:37, Michael Ridland <[email protected]> wrote: > I've heard from some people that there is tax implications of contracting > to a single company for more than 75 percent of your income, is there any > truth to this? >
There are a lot of 'tests' the ATO applies for this but in my observation over the years, many, many employers flout these and seem to get away with it. I think (IANAL) most of the risk of getting it wrong are on the payer side in that they can arguably become liable for annual and sick leave, super and other stuff that was not laid out in the original contract. There was a case of a large company that used a lot of contract labour and the individual contractors had their nose out of joint because the employees were given share grants that appreciated a lot. The contractors were then able to go back and argue that they were, for all intents and purposes employees (even though they were under contract) and get given a whole bunch of stock in the company after the fact. As always, your mileage may vary and if you're asking this question then you should really be talking to a CPA, who may then refer you to a HR specialist lawyer. Ask them about the results test. David. -- David Connors ([email protected]) Software Engineer Codify Pty Ltd - www.codify.com Phone: +61 (7) 3210 6268 | Facsimile: +61 (7) 3210 6269 | Mobile: +61 417 189 363 V-Card: https://www.codify.com/cards/davidconnors Address Info: https://www.codify.com/contact
