When working as a contractor in Australia under a Contractor of Record (COR) arrangement, specific tax and superannuation (pension) regulations may apply. To ensure compliance, contractors are classified during the onboarding process to determine whether Superannuation and Payroll Taxes (PRT) apply to their contract.
CORs may be required to complete a tax questionnaire before signing their contract. This helps accurately assess the applicability of these obligations, ensuring compliance with regulations.
COR Milestone contracts are not affected by these regulations.
Tax Calculation Overview
- Superannuation: Calculated on top of your pay, including expenses, VAT, and overtime.
- Payroll Taxes (PRT): Calculated on top of your pay + Superannuation, excluding expenses, VAT, and PRT itself.
The contractor's pay will not be affected by the taxes outlined. These taxes are the client's responsibility. If applicable, Deel will collect the taxes from the client and remit them directly to the relevant authorities as part of the service.
For more information, please visit the Australian Government Taxation Office website.
Completing the Questionnaire
CORs will be required to complete the questionnaire during their onboarding, before the contract signature.
✅ Step 1 - Initiate the questionnaire
During the contract review and signing stage, at the Review & Sign tab, select Complete Questionnaire in the Australian Tax Questionnaire section.
✅ Step 2 - Provide contract information
CORs will be asked to provide an answer to the following questions:
- Will you provide your services fewer than 10 days each month?
- Did you provide similar services to the public at large during the financial year?
They will then be asked to provide a legal declaration and their superannuation info.