I work as a contractor in IT. I work solely for a big company who contracts my time through Clicks IT Recruitment. This sort of arrangement is industry standard.
We (contractors) have been told we can no longer make pre-tax voluntary super contributions like any other employee can. I felt their answer was a little odd though and I'd like to check if they are correct about this being an ATO led change as I can't find any reference to it on your website.
Can you please confirm one way or another thanks?
Their email referring to the charge reads:
Due to changes in Australian Taxation Office reporting regulations (specifically in respect of the implementation of ATO’s STP Phase 2), labour hire providers are now no longer able to provide independent contractors (who are recipients of Personal Services Income, rather than salary/wages) with the ability to enter into salary sacrifice arrangements (e.g. for superannuation or for work-related electronic devices) whilst complying with these new ATO reporting regulations.
Therefore, the current salary sacrifice arrangement you have in place will now unfortunately need to be discontinued.
In respect of superannuation; the option for you to make additional superannuation contributions from your post-tax earnings still remains (and, depending upon your circumstances, you may be able to claim a tax-deduction for these when completing your 2022/23 tax return).
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