Tax Burden: UK versus AustraliaJune 2010
Just as the UK is moving toward more sensible small business (contractor) tax laws, in Australia we're having to defend the progress we've made.
UK moves to fix bad contractor tax lawsIn Australia our tax laws for self-employed people are not perfect, but they are fairly good. The UK has had a big problem (called IR35) for a long time. Now the new UK government has made the following commitment:
- "Review IR35 as part of a wholesale review of all small business
taxation, and seek to replace it with simpler measures that prevent tax
avoidance but do not place undue administrative burdens or uncertainty
on the self employed, or restrict labour market flexibility."
PCG comments on the Queen's speech.
PCG explains IR35 and the proposed changes.
Australia risks going backwards to bad contractor tax lawsWe've asked the PM to clarify his position on PSI laws and stop any confusion. The Abbot opposition has called for the contractor PSI laws to remain.
The ATO has won another case against a contractor on PSI laws. This particularly affects IT contractors working through labour hire arrangements. We comment on the problems in this area.
This reinforces other ATO wins. If you're a PTY or Trust, you have to be very careful to pass the results test. Check our PSI ready reckoner.