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Multiple employment agency contracts can arise where one employment agent (Agent 1) on-hires labour to another employment agent (you), and you on-hire that labour to your client. This is referred to as a chain of on-hire.

A strict interpretation of the employment agency provisions would mean that both you and Agent 1 would be liable for payroll tax on what is essentially the same employment agency arrangement.

To overcome this, the employment agent (you) closest to the ultimate client, that is the end-user of the labour provided by the service provider, will be regarded as the agent liable for payroll tax. Agent 1 will not be regarded as liable where you pay the payroll tax on the 'wages' paid to Agent 1. You must make a declaration and provide it to Agent 1 to confirm that you are liable and will pay the liability.

Please refer to our chain of on-hire ruling for employment agency contracts to verify your on-hire arrangements before completing this declaration.

  1. Gather relevant information

    The following information is required to complete the Employment Agency Contracts Chain of On-Hire Declaration Form 04

    • legal name of worker
    • legal name of employment agent who has contracted with the worker (Agent 1)
    • your legal name as the employment agent further on-hiring the worker
    • legal name of the client who is the ultimate end-user.

    Refer to the form for specific instructions.

  2. Complete the declaration

    This declaration is completed online. When you have completed all relevant and mandatory information, select submit and download a copy of the declaration.

    Complete the declaration

  3. Provide declaration to agent(s)

    Send the signed declaration to the employment agent that on-hired the service provider to you (Agent 1).

Last modified: 11 December 2023

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