[Australia] Payroll tax payable by mortgage aggregators on brokers’ commissions

On April 12 in Australia, the Supreme Court of New South Wales held that payroll tax was payable by mortgage aggregators on commissions paid to brokers, KPMG reports its findings and their implications.

The court held that a “relevant contract” existed between the mortgage aggregator taxpayer and the mortgage brokers who provided loan origination services to loan applicants/borrowers, using the taxpayer’s aggregation services (unless specific exemptions applied).

The case was Loan Market Group Pty Ltd v. Chief Commissioner of State Revenue [2024] NSWSC 390. 

According to KPMG, on the whole, the decision confirms the NSW Commissioner’s position provided in its practice note 16 and reaffirms the breadth of the relevant contract provisions. 

State revenue officers can reportedly rely on this decision to extend the reach of payroll tax into other industries with similar tripartite arrangements (e.g., insurance brokers, medical centre service providers, and gig economy businesses).

Source: KPMG

(Link via original reporting)

On April 12 in Australia, the Supreme Court of New South Wales held that payroll tax was payable by mortgage aggregators on commissions paid to brokers, KPMG reports its findings and their implications.

The court held that a “relevant contract” existed between the mortgage aggregator taxpayer and the mortgage brokers who provided loan origination services to loan applicants/borrowers, using the taxpayer’s aggregation services (unless specific exemptions applied).

The case was Loan Market Group Pty Ltd v. Chief Commissioner of State Revenue [2024] NSWSC 390. 

According to KPMG, on the whole, the decision confirms the NSW Commissioner’s position provided in its practice note 16 and reaffirms the breadth of the relevant contract provisions. 

State revenue officers can reportedly rely on this decision to extend the reach of payroll tax into other industries with similar tripartite arrangements (e.g., insurance brokers, medical centre service providers, and gig economy businesses).

Source: KPMG

(Link via original reporting)