The ATO on Thur 8.3.2012, released a Decision Impact Statement on the decision in AAT Case [2011] AATA 897, Re Newton (t/as Combined Care for the Elderly) and FCT.
In that case, the AAT affirmed that the taxpayer was liable to super guarantee charge (SGC) as the workers in question were not independent contractors and were employees. [The Applicant had about 20 workers whom she’d assign to perform work for elderly clients.]
The ATO said the decision in the case is consistent with the Commissioner’s submissions in the case and ATO’s view as expressed in Super Guarantee Ruling SGR 2005/1 (Who is an employee?) and Super Guarantee Ruling SGR 2005/2 (Work arranged by intermediaries).
Further, the ATO said consideration will be given to updating Super Guarantee Determination SGD 94/4 (Is a person who provides home based child care an employee for the purposes of the SGAA?) to clarify that the exemption in s12(11) of the SGAA does not apply to carers engaged by labour hire entities to provide childcare services in the parent’s home.
[LTN 46, 8/3]