Campaign invites brokers to take action
The Mortgage and Finance Association of Australia is increasing its efforts to resolve issues around the application of NSW payroll tax, launching a campaign encouraging brokers to take action.
On February 24, the MFAA wrote to NSW Premier Dominic Perrotett along with key members of the state government asking for a moratorium on any action against the NSW mortgage and finance broking industry by Revenue NSW.
In a statement released on Monday, the MFAA confirms it has launched a campaign to support mortgage and finance brokers to take action on the issue of Revenue NSW’s application of payroll tax on broker commissions in NSW.
MFAA CEO Anja Pannek (pictured above) has said the MFAA is urgently seeking a commitment from the Government and the Opposition to suspend all activities against the broking sector in NSW by Revenue NSW by way of a moratorium.
The moratorium would be in place until there is clarity on the rules and certainty for the industry, after which point the MFAA could work with Revenue NSW on a constructive outcome, she said.
“The best way for brokers to add their voice to our call for a moratorium is by contacting their local Member of Parliament in the lead-up to the upcoming NSW state election,” Pannek said.
The MFAA has prepared a letter that brokers can send to their local Member via email, through a secure campaign delivery code called DoGooder, she said.
“The DoGooder platform makes it quick and easy for brokers to take action on this important issue that threatens the viability of broking businesses and the financial stability of our industry,” Pannek said.
“I also encourage brokers to raise this issue with candidates in their local areas as they campaign for the upcoming New South Wales election.”
Pannek has previously said that the MFAA’s longstanding position was that Revenue NSW had no legal basis to levy payroll tax on the industry.
Revenue NSW is incorrectly considering mortgage and finance brokers as employees, representatives or agents of aggregators and views the commissions that aggregators pass on to brokers as wages or salary, Pannek said.
This tax would represent an added cost to the industry that cannot be passed on to customers, she said.
“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,” Pannek said.
Discussions around NSW payroll tax have ramped up over recent weeks, the topic having become a pressing issue for the industry. On February 18, NSW Labour shadow minister for finance Anoulack Chanthivong said the NSW Liberal government had failed to provide clarity on the issue of payroll tax, and that as a result, industry sectors as mortgage aggregators were “marred by confusion and uncertainty”.
More information on the MFAA’s payroll tax campaign can be found on the MFAA website.
