Amount payable
What payments are liable under a relevant contract?
Where services are provided under a relevant contract, only payments relating to the labour component are a wage, and therefore liable. The cost of any materials provided by the contractor is not wages and is not liable.
If the contract does not separate the material component from the labour component, the agreed percentage deductions listed in the table will apply. No reduction applies for other costs such as transport, home office, etc incurred by the contractor.
If you believe a lesser percentage applies to labour in your contract, you will need to provide relevant details.
If your industry is not listed on the table below, and you believe you are entitled to a deduction, you will need to contact OSR for a private ruling.
The GST component of a contract is not liable.
| Trade | Deduction from gross payments to contractor (%) |
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| 25% |
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