The ATO has embarked on a data matching program to highlight organisations who are incorrectly classifying employees as contractors.
Some businesses are breaking the law by incorrectly treating their employees as contractors and avoiding their required tax and super obligations. To tackle the issue of businesses incorrectly treating their employees as contractors, they use a combination of education and compliance.
They use a range of compliance strategies to identify and take action against businesses that want to avoid their obligations to their workers. They identify and take action against businesses that avoid their tax and super obligations by incorrectly treating their employees as contractors.
Some of the techniques used are:
- data matching
- comparing business information
- reports from the community
- information provided by other government agencies.
They then contact and visit high-risk businesses to review how they have set up their employment and contracting arrangements.
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