🇦🇺Australia

Payroll Tax Threshold Breaches in Subcontractor Coordination

2 verified sources

Definition

Survey projects often engage multiple subcontractors for specialized surveys, pushing grouped payments over state thresholds without visibility.

Key Findings

  • Financial Impact: 5.45% tax rate (NSW) on amounts over AUD 1.5M threshold; penalties up to 100% plus interest
  • Frequency: Annually per state jurisdiction
  • Root Cause: Fragmented manual invoicing and coordination across 6 states

Why This Matters

The Pitch: Surveying companies in Australia face AUD 50,000+ surprise payroll tax on subcontractors. Automated aggregation prevents overruns.

Affected Stakeholders

Survey Managers, Accountants

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Fair Work Act Subcontractor Non-Compliance Penalties

AUD 6,000+ per breach for underpayment; SG charge up to 200% of shortfall plus interest

GST/BAS Lodgement Delays from Subcontractor Invoicing

AUD 222 base GIC per 28 days late + 20% shortfall penalty; typical AUD 2,000-5,000 per quarter

AUSTRAC AML/CTF Reporting Failures for High-Value Survey Contracts

AUD 22.2M max civil penalty per breach; minimum AUD 5,000 reporting failure

Delayed Invoicing on Milestone Verification

30-60 days extended AR; AUD 500-1,000 interest cost per $20,000 invoice

Unbilled Acreage & Milestone Services

2-5% revenue leakage per project; e.g., $100-$500 lost on $10,000 survey

Permit & Compliance Overruns

AUD 500-2,000 extra per project in permits and expedited fees

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