ISA welcomes the opportunity to comment on the Australian Taxation Office’s Draft Tax Ruling 2022/D3 (Ruling) and appertaining Practical Compliance Guide 2022/D5 (Guide). We are supportive of the ATO’s aspiration to help those procuring or providing labour to self-assess the legal nature of their relationship.
ISA believes the ATO should acknowledge that these documents are issued in the context of prevalent Superannuation Guarantee (SG) non-compliance. Enhanced SG compliance should be nominated as an objective, or desired outcome, of the Ruling and Guide. ISA further believes that the Ruling and Guide insufficiently recognise the power imbalance often existent between parties when contracts for the provision of labour are negotiated.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.