Moratorium on NSW payroll tax – mortgage and finance broking industry

Join the call for a moratorium against the application of payroll tax to the mortgage and finance broking industry.

Revenue NSW is seeking to introduce payroll tax, a new tax, on commissions paid to mortgage and finance brokers.

Revenue NSW are taking this approach because they have a view that mortgage and finance brokers are 'employees' or contractors employed by aggregators, rather than small independent businesses in their own right.

We believe this is wrong. Mortgage and finance brokers are not employees of aggregators, their commission is not a wage, nor is it a salary.

This tax would represent an added cost to our industry that cannot be passed on to customers.

Revenue NSW is also seeking to retrospectively apply this tax, as well as applying penalties – on a tax that should not apply to our industry.

The law is unclear. We are calling for a moratorium against the application of payroll tax to the mortgage and finance broking industry until the law is clear.

Join the call for a moratorium against the application of payroll tax to the mortgage and finance broking industry.

Revenue NSW is seeking to introduce payroll tax, a new tax, on commissions paid to mortgage and finance brokers.

Revenue NSW are taking this approach because they have a view that mortgage and finance brokers are 'employees' or contractors employed by aggregators, rather than small independent businesses in their own right.

We believe this is wrong. Mortgage and finance brokers are not employees of aggregators, their commission is not a wage, nor is it a salary.

This tax would represent an added cost to our industry that cannot be passed on to customers.

Revenue NSW is also seeking to retrospectively apply this tax, as well as applying penalties – on a tax that should not apply to our industry.

The law is unclear. We are calling for a moratorium against the application of payroll tax to the mortgage and finance broking industry until the law is clear.

Email your local NSW Member of Parliament

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I am asking for your support for a moratorium against the application of payroll tax to the mortgage and finance broking industry. I am the owner of an independent small broking business in your electorate. I have worked very hard to build my business and am proud of the work I do supporting my customers in achieving their goals.

I use the services of many organisations to run my business, including services an aggregator provides to me.

Revenue NSW is seeking to introduce payroll tax, a new tax, on commissions paid to mortgage and finance brokers through aggregator businesses.

Revenue NSW are taking this approach because they have a view that I am an “employee” or contractor employed by an aggregator, rather than a small independent business in my own right.

This is wrong. I am not an employee of the aggregator, and my commission is not a wage, nor is it a salary. I am an independent small business, and my commission is revenue to my business for the work that I do with my customers.

The way that I get paid for the work that I do is through commissions paid by lenders. When I help my customer get a loan with a lender or help them to refinance to a new loan, I am paid by that lender. I contract the services of an aggregator to administer these commission payments to me. This is normal practice for my industry.

The law is very unclear, and I am concerned Revenue NSW is taking advantage of this lack of clarity to apply this extra tax.

This tax would represent an added cost to our industry that cannot be passed on to customers. This means the smallest of small businesses in our industry will bear the brunt of this – at a time when we are working hard to support our customers who are facing cost of living pressures and increases in their mortgage interest rates.

Revenue NSW is also seeking to retrospectively apply this tax, as well as, applying penalties - on a tax that should not apply to our industry. This is applying penalties on a tax that we should not be obligated to pay.

If Revenue NSW continues with its actions, I worry that many small broking businesses in NSW will close. That means that customers who need help with their home loans and business financing needs will not get the support that they need to navigate this very challenging economic environment, especially in regional areas where bank branches are few and far between.

Until the law is clear, I call on the NSW Government to impose a moratorium on any action by Revenue NSW against the mortgage and finance broking industry in NSW.

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