This week’s TaxVine preamble by our Tax Policy and Advocacy team explores the two decisions and what they mean for your clients. What are your reactions to the decisions? What do you see as the challenges and issues employers face when it comes to correctly characterising their workers? Keen to read your comments.
Robyn Jacobson, CTA
The Tax Institute
It’s appropriate to note that the High Court left one critical issue unanswered: that is the application of section 12(3) SGAA (deeming a person to be an employee where engaged under a contract wholly or principally for labour. The Court (appropriately) remitted that issue back to the Federal Court to allow the ATO to be joined on the issue. So we still await High Court guidance on section 12(3), albeit that we have the recent Federal Court cases on that section as set out in the article.