Clarence River Jockey Club Ltd and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between Clarence River Jockey Club Ltd (CRJC) and the Commissioner of Taxation concerning the assessment of superannuation guarantee charge (SGC). The core of the disagreement was whether jockeys engaged by the CRJC were to be deemed "employees" of the club for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SGAA), thereby triggering the club's liability to pay the SGC.

The Tribunal was required to determine whether the CRJC had discharged its onus of proving, on the balance of probabilities, that it was not liable to pay jockeys for riding fees during the relevant periods. This involved assessing whether the jockeys were employees of the CRJC under sections 12(3) or 12(8) of the SGAA, or if they were independent contractors. The Tribunal also considered the impact of the "returns to owners" policy implemented from July 2000, which aimed to reduce costs for racehorse owners.

The Tribunal's reasoning was heavily influenced by the decision in *Scone Race Club Limited v Commissioner of Taxation*, which dealt with a similar issue. It found that the CRJC, like the club in *Scone Race Club*, had failed to adduce sufficient direct evidence to establish who was liable to pay the riding fees. While the CRJC submitted that amounts were identified as an "expense" in its accounts, the Tribunal noted this did not assist as the club had assumed an obligation to owners to pay these fees. The Tribunal concluded that the CRJC had not sufficiently discharged its onus of proof, as the evidence presented was generalised and lacked the specificity required to determine the nature of the relationship between the CRJC and the jockeys.

Ultimately, the Tribunal found that the CRJC had not discharged its onus of proof and was liable to pay the superannuation guarantee charge. The decision under review was varied accordingly.