Relevant contracts
A relevant contract is a contract under which the hiring business:
supplies services relating to work, or
is supplied with services relating to work, or
gives out goods to natural persons for the resupply of those goods to the hiring business or another member of a group containing the hiring business.
Relevant contracts do not include:
Exemption 1
Contracts under which the supply of labour is ancillary to the supply or use of goods owned by a contractor.
Exemption 2
Contracts for services the business does not ordinarily require and which are provided by a person who provides such services to the general public.
Exemption 3
Contracts for services ordinarily required for less than 180 days in the financial year by the hiring business.
Exemption 4
Contracts under which a person provides services for a period that does not exceed 90 days in total in any one financial year.
Exemption 5
Contracts that do not meet the criteria for exemption 2, 3 or 4 but the Chief Commissioner is satisfied are contracts for services that are provided by a person who has a business of providing such services to the general public within that financial year.
Employers can not utilise the Chief Commissioner's discretion under exemption 5. Each case must be referred to the Chief Commisioner of State Revenue who will decide whether or not to include the contract as a relevant contract.
In making a determination, the Chief Commissioner will review the nature of the contractor’s business and other matters considered relevant. Evidence of supplying similar services to other business is the prime requirement. Being available to do so is insufficient in itself.
For example
A carpenter is engaged by several builders throughout the year, but does 120 days work with one hiring business. The carpenter provides a copy of invoices from the other business for similar work and the Chief Commissioner is satisfied that the contract for 120 days in not included as a relevant contract.
Exemption 6
Contracts under which the contractor engages additional labour to fulfil the contract. This must include at least two natural persons working under the one contract with the contractor paying for the services of the other workers.
For this exemption to apply, the person engaged must perform the work that is the object of the contract. A spouse performing purely clerical work would not satisfy the exemption, as he or she, would not be engaged in the work to which the contract relates.
Exemption 7
A contract for the conveyance of goods in a vehicle provided by the person conveying them, and
Exemption 8
A contract for services solely related to procuring persons who want to be insured by the employer, and
Exemption 9
A contract for services related to the door to door sale of goods solely for domestic purposes.
It should be noted that employment agency or labour hire contracts are not relevant contracts, and the exemptions do not apply to them. A separate section deals with employment agency contracts.
