RevenueWA Payroll Tax Audit Objection

The situation

Jason, 52, runs a civil engineering contracting firm in Perth, WA. He uses 14 subcontractors, individual operators who drive their own earthmoving equipment and work on multiple projects for multiple principals. In February 2026, RevenueWA completed an audit and issued an assessment of AU$127,000 in unpaid payroll tax, plus penalties and interest (AU$161,000 total), because the auditor treated all 14 subcontractors as deemed employees under the contractor provisions.

He calls RevenueWA, the officer explains the process but cannot advise on what grounds to raise or how to structure the objection. His accountant (general practice, not a payroll tax specialist) recommends getting a specialist, who quotes AU$6,500.

What Jason doesn't know: (a) At least 10 of his 14 subcontractors qualify for the "use of own plant and equipment" exception, they all drive their own machinery. This single exception would eliminate most of the assessment. (b) Several of his subcontractors also have 3+ other principals in the same period, an independent ground for exception. (c) The objection must map each contractor category (earthworks, concrete, formwork) to the specific exceptions applicable to that category. A blanket objection doesn't work, the exceptions must be applied individually.

Who receives this

WA SMBs (particularly construction, resources services, professional services, and trade services businesses) receiving RevenueWA payroll tax assessments relating to contractor classification or grouping liability. Primary sectors: civil engineering, mining services, construction, IT services using contractor-model workforces.

Why the agency will not advise you

RevenueWA cannot advise objectors on what grounds to raise or how to structure their objection. The RevenueWAConnect portal handles compliance but not protest strategy. WA's contractor provisions are among the most complex in Australia, the six-exception test requires a structured analysis. Payroll tax specialists charge AU$3,000–$8,000 for objection drafting.

Key facts, with sources

• RevenueWA administers payroll tax in Western Australia under the Pay-roll Tax Assessment Act 2002 (WA). The WA payroll tax threshold is AU$1,000,000 per year in wages, one of the highest in Australia (NSW: AU$1.2M; VIC: AU$700k; QLD: AU$1.3M). Businesses that disagree with a RevenueWA assessment have the right to lodge a formal objection within 60 days of service under s.41 of the Pay-roll Tax Assessment Act 2002. If the objection is disallowed, the business can seek external review at the State Administrative Tribunal (SAT). Source: About payroll tax — RevenueWA · RevenueWA objection and review process
• WA's payroll tax contractor provisions (Part 5, Schedule 1, Pay-roll Tax Assessment Act 2002) deem certain contractor payments to be 'wages' subject to payroll tax unless specific exceptions apply. The six exceptions include: (1) the contractor is contracted to achieve a specific result; (2) the contractor provides services to the public generally; (3) the contractor served 3 or more principals in the same or similar period; (4) the contractor uses their own plant and equipment; (5) the contractor has business interruption insurance; (6) the contractor is a company/trust/partnership (not an individual). These provisions are the most common source of RevenueWA audit assessments for service businesses using contractors. Source: Payroll Tax Tasmania: Thresholds, Rates, Returns and Exemptions — Appoyo · RevenueWAConnect — Department of Treasury and Finance

When to bring in a professional

Self-serve responses fit routine cases: clear facts, amounts a business can absorb, and a deadline still ahead of you. Bring in a licensed professional when the amount at stake is large relative to their fee, the facts are genuinely disputed, criminal exposure is possible, or the deadline has already passed. A short paid consultation to sanity-check your plan is often worth it even when you handle the filing yourself.

All sources for this guide

1. About payroll tax — RevenueWA
2. RevenueWA objection and review process
3. Payroll Tax Tasmania: Thresholds, Rates, Returns and Exemptions — Appoyo
4. RevenueWAConnect — Department of Treasury and Finance