Labour Hire Income Explained – Declare It Right & Maximise Refunds

Labour hire income comes from an agency that pays you for work done at host businesses. It must be declared separately under “Labour hire or other specified payments” in your tax return. Always include your Labour Hire Summary or Income Statement, tax withheld, and super details to stay compliant and avoid ATO penalties.

The Confusion Around Labour Hire

You worked all year, bouncing between job sites, clocking hours for different companies — but your pay always came from the agency. Tax time arrives, and suddenly MyGov flashes “Labour Hire Income.” You pause. Is this wages? Is this contracting? The tension builds when you don’t know where to put it.

The Cost of Getting It Wrong

Too many workers throw labour hire into “normal wages” and end up flagged by the ATO. That’s when audits, corrections, and sometimes penalties hit. We’ve seen people lose refunds or cop interest simply because they didn’t tick the right box. That’s tax tragedy you don’t want to live through.

From Guesswork to Confidence

The truth? Labour hire is simple — if you know the rules. You’re paid by the agency, not the host. At year’s end, you’ll get either a Labour Hire Summary or an Income Statement via MyGov. All of it goes into the “Labour hire or other specified payments” section. Once you know that, the fog lifts.

Nailing Your Tax Return

When you declare labour hire correctly, everything lines up — your tax withheld, your super, your refund. No stress, no penalties, no sleepless nights. With GoTax, you can go from tension to triumph in minutes.

What You Must Declare

• Total earnings – every cent from labour hire jobs

• Tax withheld – reported by the agency

• Super contributions – if eligible

• Allowances – travel, tools, or others paid out

Record Keeping

Keep these for 5 years:

• Labour Hire Summary or MyGov Income Statement

• Pay slips from your agency

• Tax withheld details

• Dates/locations worked

Gotax Online FAQ – Real Questions, Real Fast

Who’s my employer if I work labour hire?

The agency, not the business you’re sent to.
Labour hire workers are employed by the agency, not the host.

Where do I declare labour hire income?

In the “Labour hire or other specified payments” section of your tax return.
Labour hire income must be declared in its own section.

Is labour hire the same as wages?

No, the ATO treats it differently.
Labour hire is separate from regular wages in your return.

What if I didn’t get a summary?

Check MyGov or contact your agency.
Missing summaries are on MyGov or from the agency.

Do I get super?

Yes, if eligible — the agency must pay it.
Agencies must pay super for eligible labour hire workers.

What if I worked for multiple agencies?

Declare income from each.
All agency income must be declared, no skipping.

Call To Action (Derek Style)

GoTax Online makes labour hire returns dead easy. We help you put income in the right spot and make sure your return ticks every box.

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