The Supreme Court of NSW has concluded that the arrangements between the subcontractors and two companies providing specialised cleaning/housekeeping services were employment agency contracts within the meaning of s 37(1) of the Payroll Tax Act 2007 (NSW). Hence, it held that the payroll tax was correctly imposed on the amounts paid to the subcontractors “in relation to” the procurement of the additional staff.
Bayton Cleaning Company Pty Ltd v Chief Commissioner of State Revenue (NSW); International Hotel Services Pty Ltd v Chief Commissioner of State Revenue (NSW) 2019 ATC ¶20-696; [2019] NSWSC 657; Ward CJ in Eq, 7 June 2019.