The AAT has held that a plumber was an “employee” pursuant to the extended meaning of that term in s 12(3) of the Superannuation Guarantee (Administration) Act 1992 (SGAA) for a person working under a contract – wholly or principally for labour.
The facts were these.
- The taxpayer conducted a business selling and installing cooling and heating systems.
- It engaged a Mr Pirie under a letter of engagement which described him as a “Sub-contract plumber” for which he was paid an hourly rate for work allocated each day.
- There was no capacity to delegate the work.
The AAT –
- ruled that he was an employee under the extended meaning of that term in s 12(3) of the SGAA – despite the contract calling Mr Pirie as a sub-contractor.
- The AAT said the contract was the paradigm kind of agreement that would be caught by s 12(3) for contracts principally for labour.
- Accordingly, the AAT upheld the Superannuation Guarantee Charge (SGC) assessments issued to the taxpayer for failing to make super contributions on behalf of Mr Pirie.
(The Trustee For Virdis Family Trust t/a Rickard Heating Pty Ltd and FCT [2022] AATA 3, AAT, Reitano M, 5 January 2022.) [LTN 4, 10/1/22]
[Tax Month – January 2022 – Previous 2021] 11.1.22