Labour hire scam operating in Western Australia

Finance Minister Ben Wyatt has urged employers who have contracted their payroll processing function to another company to check that their payroll taxes are being paid to the Commissioner of State Revenue.

Recent audits have identified that some payroll processors, particularly those using ‘labour hire’ contracts, are not passing on payroll taxes to the Commissioner of State Revenue despite receiving payments from the employer.

Employers using a payroll processor are urged to:

  1. Ask the payroll processor for proof that the relevant payroll tax has been paid to the State Government; and
  2. Contact the Department of Finance, Office of State Revenue to confirm the relevant payroll tax for your organisation has been paid.

Finance Minister Ben Wyatt said: “I urge all employers using a contracted payroll processor to confirm their relevant payroll tax is being paid to the Commissioner of State Revenue. Similarly, employers considering using an external party to pay employee wages, benefits, PAYG, superannuation and payroll tax should conduct appropriate due diligence before entering such an agreement.

“The Western Australian Government is collaborating with State Revenue offices around the country to share intelligence and ensure a co-ordinated approach is taken to raise awareness about this scam.”

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