A statement from Sam White on the Payroll Tax case with Revenue NSW

Here's a statement from Sam White, Executive Chairman, LMG on this:

On Monday (04 / 11 / 2024) Final Orders were handed down in our Payroll Tax case with Revenue NSW.

Earlier this year, on 12 April, the NSW Supreme Court delivered its decision on payroll tax impacting brokers. The case has been closely watched by many, as it raises broader questions about payroll tax obligations that extend beyond us and impacts the entire industry. Since April, we’ve been waiting for clarity on penalties, interest, and costs, which has now been handed down in Final Orders.

Here’s what happened
Industry-wide recognition: One of the standout messages from yesterday was the court’s recognition that the challenges we’re facing with payroll tax aren’t unique to us. In fact, the judge acknowledged that while his initial decision on payroll tax application may appear harsh, this isn’t simply a case of one company needing to adjust - it’s an industry-wide issue. Any real change will require action from parliament to amend the legislation. It’s a sentiment that reinforces just how complex and widespread these payroll tax issues are across the industry.

Substantial reductions: The court handed down significant reductions in payroll tax as a result of the application of the exemptions, together with the penalties and interest that were issued by Revenue NSW. This is a great outcome.

Appeal period: Both LMG and Revenue NSW have until 2 December to consider an appeal.

For the past 30 years we've had the backs of our brokers and have been fighting for what's fair, even when things get complicated. As a result, we have made the decision to cover all historical costs and liabilities from this case with the implication that brokers will only see changes from 1 July 2024. This case underscores just how important it is to stand together and push for transparency and fairness across our industry.

It’s complex, but we’re in it together. A massive thank you to all our business owners and brokers who’ve been alongside us every step of the way.