There’s a buzz across the broking world about payroll tax—and rightly so. This isn’t just an aggregator problem. It potentially impacts every broker, no matter how your business is set up.
Let’s unpack it.
What’s the Issue?
The recent NSW court ruling confirmed that a “relevant contract” exists between aggregators and brokers. This means payroll tax could apply to the commissions paid from lenders to brokers via aggregators—unless the broker can prove they meet an exemption.
To be clear: this doesn’t mean brokers are employees. But it does mean that for the sake of payroll tax, they could be treated like one. That has big financial implications.
Who’s Exempt?
Thankfully, some important exemptions were clarified, such as:
- Engaging a family member in your business (with documented proof)
- Hiring a genuine service provider (such as a loan processor)
- Meeting the “two or more” rule, if you employ or contract other people in your business
- Less than 90-day activity for certain commission types
Why This Affects All Brokers
If you don’t meet an exemption, the aggregator could be liable for payroll tax on your commissions. In turn, the aggregator may look to pass on that cost—potentially reducing your income.
Whether you’re an individual broker, running a solo shop, or part of a small team, it’s time to:
- Review your business structure
- Understand your risk profile
- Ensure you’re working with compliant, legitimate providers
How iLoad Loans Helps You Stay Compliant
One of the clearest exemptions identified by the court is engaging a genuine third-party loan processing provider.
That’s where we come in. Here’s why brokers across Australia choose iLoad Loans: Australian-based, onshore team Legitimate service provider with detailed contracts You maintain full business ownership and autonomy Mentoring, training & workflow support to grow your brand Peace of mind that you’re supported and structured properly
With iLoad Loans, you’re not just getting a processor—you’re partnering with a team who understands your business and the risks you face.
Final Thought
The payroll tax ruling may not have gone the way aggregators hoped, but the good news is there’s a path forward.
Let’s make sure your business is protected, compliant, and set up for success.
Reach out today to learn more about how iLoad Loans can help—because in 2025, you need more than just a loan processor. You need a partner who’s got your back.