The Broker Times Special Report

The Tax Trap

Why the 5.45% Payroll Tax is an Existential Threat

1 The Profit Erosion

Aggregators operate on thin margins. When a 5.45% tax is applied to the Gross Flow (not net profit), it wipes out the aggregator's retained earnings, forcing costs down to you.

Total Commission Flow 100%
$100,000 (Example)
Standard Broker Split ~95%
5%
Paid to Broker ($95k) Aggregator Retains ($5k)
Payroll Tax Liability (5.45% of Gross) -$5,450
!!!

CRITICAL: The tax ($5,450) exceeds the Aggregator's Retained Earnings ($5,000). The model is insolvent without passing costs to brokers.

2 The Control Paradox

Federal Law (NCCP)

📜

"You MUST supervise."

Aggregators must police brokers to keep their license.

State Law (Revenue NSW)

💰

"Supervision = Employment"

That supervision is used as evidence to tax you.

3 Your Audit Risk Profile

High Risk

Sole Trader

  • ❌ Works alone
  • ❌ No admin staff
  • ❌ 100% Income from 1 aggregator
Low Risk

Structured Biz

  • ✅ "Two-Person" Rule met
  • ✅ Offshore Processing used
  • ✅ Diversified Income