Payroll tax and contractors in the Australian Capital Territory
The ACT counts what is paid under a relevant contract as wages, and its table records no contractor exemption tied to a count of days, either for how long a contractor works or for how often the business needs the services. The exemptions the table does record turn on the service: ancillary to goods, from a contractor serving the public generally on the terms the table sets out, or solely carrying goods in the contractor's own vehicle. The table also records that those exemptions do not apply when the contract covers other services as well.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
The rules in Australian Capital Territory
| What it is | Value | When it applies | Where it is set |
|---|---|---|---|
| Payments to contractors under a relevant contract count as wages | Yes | As published on 26 December 2025 | s 35(1): amounts under relevant contracts taken to be wages |
| Services ancillary to supplying goods, or to using the contractor's goods, are exempt | Yes | As published on 26 December 2025 | s 32(2)(a): services ancillary to goods |
| Services not ordinarily needed, from a contractor serving the public generally, are exempt | Yes | As published on 26 December 2025 | s 32(2)(b)(i): services not ordinarily required |
| Services are exempt if the commissioner is satisfied the contractor serves the public generally | Yes | As published on 26 December 2025 | s 32(2)(b)(ii): commissioner satisfied of services to the public |
| Services solely for carrying goods in the contractor's own vehicle are exempt | Yes | As published on 26 December 2025 | s 32(2)(c): conveyance of goods |
| The exemptions still apply when the contract also covers other services | No | As published on 26 December 2025 | s 32(3)(a): contracts that include other services |
Each rule is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
What it means for your books
- The ACT exemptions in the table turn on the kind of service rather than on days worked, so a description of each service, filed with the contract it was provided under, is the record they draw on.
- Because the exemptions fall away when a contract covers other services too, the books can hold the full contract behind each relevant payment, showing the complete list of services it covers.
- For carrying goods, records showing that the vehicle used was the contractor's own and that the job was solely carrying goods support the exemption.
- The ACT exempts services the business does not ordinarily need from a contractor serving the public generally, and separately exempts services where the commissioner is satisfied the contractor serves the public generally. Correspondence with the ACT Revenue Office belongs in the contractor's file, and questions about a contract go to the ACT Revenue Office or your accountant.
General information
Sources
- Payroll Tax Act 2011 (ACT), Republication No 20
ACT Parliamentary Counsel's Office. Republication No 20, effective 26 December 2025, released 26 December 2025. Checked 15 October 2026.
© ACT Government, ACT Legislation Register Licence: ACT Legislation Register copyright policy: copyright, ACT Government.
- Payroll tax
ACT Revenue Office. Page modified 9 September 2026 (dcterms.modified metadata), released 9 September 2026. Checked 15 October 2026.
© Australian Capital Territory Licence: ACT Revenue Office copyright notice: copyright, Australian Capital Territory (unaltered reproduction for personal or non-commercial use).
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