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Re: Rural Property Caretaker - Contractor or Not?

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Newbie

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Hi,

We are seeking a caretaker for our cattle station.  The caretaker role is basically a part time position whereby the person checks that stock have water, that fences are in good order, gardens are watered and general station sheds and other premises are kept clean and tidy.  This is a paid part time position also with free accommodation, electricity and water provided on the cattle station.

The problem is, the successful candidate wants to invoice us as a "Contractor" instead of being paid as an employee using a Tax File Number.  Our accountant says that this position is not a contractor type position.  The person wants to do this so that he can keep his elderly pension.  I would have thought that if he was invoicing us, that income should be declared via submitting his tax return therefore he would be losing his pension anyway.  Is that the case?  

Anyway, just needed some confirmation that what our accountant is saying is correct  (that this is not a contractor position) as we don't want to agree to pay him as a contractor and get into trouble down the track.

Thanks

 

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Taxicorn

Replies 1

(1) If he is 'invoicing' you then that income should be declared by them, so it will still affect the pension.

- Tell them that the expense will be reported as a contractor so the ATO will know anyway..Smiley Happy

 

(2) Have a read of this Employee or contractor and use the decision tool.

- Quickly checking it it looks like they are an employee, but do it yourself to confirm.

 

Finally yes you will get in trouble if you do not treat them as an employee.

 

Sounds like they want to be paid but not declare it....

 

 

 

2 REPLIES 2
Highlighted

Best answer

Taxicorn

Replies 1

(1) If he is 'invoicing' you then that income should be declared by them, so it will still affect the pension.

- Tell them that the expense will be reported as a contractor so the ATO will know anyway..Smiley Happy

 

(2) Have a read of this Employee or contractor and use the decision tool.

- Quickly checking it it looks like they are an employee, but do it yourself to confirm.

 

Finally yes you will get in trouble if you do not treat them as an employee.

 

Sounds like they want to be paid but not declare it....

 

 

 

Newbie

Replies 0

Hi macfanboy

Thanks very much for replying.  That's exactly what I reckon - wants his cake and eat it too.  We don't want to risk anything like that.

Thanks very much for sending me the link.  It's greatly appreciated!!

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