Scone Race Club Limited v Commissioner of Taxation [2019] FCA 976

FEDERAL COURT OF AUSTRALIA

Scone Race Club Limited v Commissioner of Taxation [2019] FCA 976 File number: NSD 1830 of 2017

Judge: LOGAN J

Date of judgment: 21 June 2019

Catchwords: SUPERANNUATION – liability for superannuation guarantee charge – whether jockeys are to be taken to be employed by the applicant – Superannuation Guarantee (Administration) Act 1992 (Cth) s 12(8) – whether applicant is liable to make the payment of riding fees to jockeys - where centralised payment system was established by the applicant to control race-related payments – where racing industry is heavily regulated by statute and national and local rules – where jockeys and trainers are required to be licenced by the applicant – where local rule of racing, Rule 72 provided that the race club such as the applicant was liable to pay riding fees to jockeys – whether applicant subject to any obligation in equity to make payment for riding fees to jockeys – where Local Rule 72 did not constitute a representation by the applicant – where riding fees paid by industry regulator directly to jockeys under its centralised payment system – where general industry practice was that jockeys were engaged by trainers on behalf of owners and that race clubs paid riding fees on behalf of owners. HELD – no obligation in equity for applicant to make payment – applicant not deemed to be an employer by s 12(8)(b) Superannuation Guarantee (Administration) Act 1992 (Cth).

Legislation: Superannuation Guarantee (Administration) Act 1992 (Cth) ss 12, 16, 17, 19 Superannuation Guarantee Charge Act 1992 (Cth) s 5 Taxation Administration Act 1953 (Cth) ss 14ZZ, 14ZZO Thoroughbred Racing Act 1996 (NSW) ss 3, 4, 5, 13, 42