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Australia: Payroll tax payable by mortgage aggregator on commissions paid to brokers

A Supreme Court of New South Wales decision concerning payroll tax payable by mortgage aggregator on commissions paid to brokers.

April 24, 2024

The Supreme Court of New South Wales on 12 April 2024 held that payroll tax was payable by mortgage aggregators on commissions paid to brokers.

The case is: Loan Market Group Pty Ltd v. Chief Commissioner of State Revenue [2024] NSWSC 390

In particular, the court held that a “relevant contract” existed between the mortgage aggregator taxpayer and the mortgage brokers who provided loan origination services to loan applicants/borrowers, using the taxpayer’s aggregation services (unless specific exemptions applied).

KPMG observation

The decision largely confirms the NSW Commissioner’s position provided in its practice note 16 and reaffirms the breadth of the relevant contract provisions. State revenue officers may rely on this decision to broaden the reach of payroll tax into other industries with similar tripartite arrangements (e.g., insurance brokers, medical center service providers, and gig economy businesses).

For more information, contact a KPMG tax professional in Australia:

Keith Swan | keithswan@kpmg.com.au

Alston Kam | akam2@kpmg.com.au

Joseph Tranzillo | jtranzillo@kpmg.com.au

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