Labour Hire


(from the ATO's Business Implementation Guide)



Labour Hire – payments by a business that arranges for persons to perform work or services, or performances, directly for clients of the entity. Income for contractors only, does not include employees but may include those with a voluntary agreement

Employees engaged by a labour hire business must not be reported as Labour Hire Income Type, but as their relevant Income Type, such as Salary and Wages, Working Holiday Makers, Seasonal Worker Programme etc.



STP Creator - MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. STP Creator will extract the details from the Employee's Card in MYOB and this can be used to pre-fill the selections. Also if changes are made to the Employee Card, you will be required to update the Employment Details screen to ensure it reflects the changes.



STP Creator - non MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. .



Note: Only one Income Type can be set for each Payee ID. If an employee changes Income Types during a payroll year, create a new Payee ID for the new Income Type. For example if an employee started as a Working Holiday Maker and later became an Australian Resident, use one Payee ID for the Working Holiday Maker Income Type and a different Payee ID for the Salary and Wages Income Type.