Today, the MFAA 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 the state.
MFAA CEO Anja Pannek explained that they are urgently seeking a commitment from both the Government and the Opposition to suspend all activities against the broking sector in NSW by Revenue NSW, by way of a moratorium, until there is clarity on the rules and certainty for industry. Then we can work with Revenue NSW on a constructive outcome.
“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,” Ms Pannek continued.
The MFAA has prepared a letter brokers can send to their local Member via email through a secure campaign delivery service called DoGooder.
“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,” said Ms Pannek.
“I also encourage brokers to raise this issue with candidates in their local areas as they campaign for the upcoming New South Wales election.”
Ms Pannek commented that 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 a salary.
“This tax would represent an added cost to our industry that cannot be passed on to customers. 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,” she said.
