Work in Labour Hire and having trouble submitting your Tax Return?

Work in Labour Hire and having trouble submitting your Tax Return?

This might help.

As a Labour Hire Employee, your employer is obligated to report your Wages under the ATO’s ‘Labour Hire’ code. Unfortunately, this can cause some confusion when it comes to lodging your tax return.

We’ve tried to simplify this for you below, however, please reach out to the ATO directly (from the MyTax Live Chat) if you need further assistance.

Note: The information below has been pulled from and reformatted from here. If any information has changed, please refer to the source.

If you start to do your Tax Return, and get stuck, here are some prompts that may help you:

The following steps should assist:

Step 1: Filling in your details

1. In myTax, if it has prefilled your details, please go straight to Step 4 to complete.
   • If it has not prefilled, select ‘Personal Services Income Decision Tool’ to create the correct label.
2. Save to myTax > Add/ Edit at Step 4 and Prepare your return.

Step 2: Complete questions

Complete questions under ‘Business Details at the Business / sole trader, partnership, and trust income (including loss details)’ label.

Note: (Please note, this does not constitute advice. These are the steps gathered from the ATO’s recommendation on their Community Noticeboard)

From there, you can fill the steps in as per below:

1. Fill in the steps:

   • Tick:     Sole Trader or had business income or losses, partnership or Trust Distribution

   • Tick:     Business/Sole trader income or loss

   • Tick:     Personal services income)

2. Click Next.
3. Click ADD/EDIT: Business/sole trader, partnership and trust income (including loss details) 
   • Tick Yes: Did you receive any personal services income? 
   • Tick No: Did any activity satisfy the results test? 
   • Tick No: Have you received a personal services business determination(s) that was in force for the whole of the period you earned PSI?
   • Tick Yes: Did you receive 80% or more of your PSI from one source?
4. Main business or professional activity
   1. Tick: LABOUR SUPPLY SERVICES
   2. Number of business activities = 1. CLICK SAVE.
5. Business income statements and payment summaries CLICK ADD/EDIT. (Enter details from a payment summary).
6. For Payment Type click 'Labour Hire'
   • Click Save.
   • Click Save and Continue
   • Click ADD/EDIT on Deductions and enter any deductions.

Please note: These steps are only valid for wage information sent via Single Touch Payroll 1. STP2 no longer asks for this differentiation.