Contingent Workforce Scheme

Contingent workforce payments are changing, due to new superannuation and payroll tax increases

From 1 July 2022, the superannuation guarantee (SG) will increase from 10%to 10.5%. This is in line with the Superannuation Guarantee (Administration) Act 1992 (SGAA).

COVID-19 related payroll tax reduction amendments to the Payroll Tax Act (2007) will also end, in accordance with the NSW State budget 2020-2021. This means the payroll tax rate will revert to the pre-COVID payroll tax rate of 5.45% on 1 July 2022.

You must increase payments to Contingent Workforce Scheme suppliers to reflect these changes. This is because fluctuations in statutory-prescribed costs are passed on at cost to customers under the scheme rules.

Contractor Central systems updates

Contractor Central will update from 27 June 2022 to reflect the new superannuation guarantee and the changes to payroll tax. Treasury has approved the earlier date. This is because changes must be in effect from the beginning of a time-sheeting week.

All (NSW and ACT) current work orders and assignments for PAYG workers will adjust to reflect the changes. As ABN workers are not paid superannuation, the superannuation changes do not apply to them.

NSW Procurement is coordinating the adjustments in the Contractor Central vendor management systems (VMS) with the managed service providers (MSPs) and VMS providers for agencies.

To minimise the administrative impact of the change, increases in work order and assignment values will not require individual approval.

You can direct any questions you may have about the changes to your MSP or to NSW Procurement.

Eligible buyers can continue to purchase from this scheme via Contractor Central or from prequalified suppliers.

NSW Procurement advises that whole-of-government SCM0007 Contingent Workforce Scheme has been extended  to 28 February 2028.

This scheme covers the contingent workforce needs of NSW Government and eligible buyers. It is mandatory under Procurement Board Direction 2012-02.
No further action is required from scheme suppliers or applicants in etendering.

This is the current list of prequalified suppliers.

Benefits for suppliers are:

• access to Contractor Central at 10 agencies through the vendor management system
• not "locking-up" a market, new suppliers can join the scheme at any time through a self-service, online application process
• easier for suppliers to do business with government buyers with reduced red tape
• ability to apply for business opportunities by regions and categories, and to apply for additional categories if not all categories are awarded to them
• professional indemnity and public liability insurance requirements of $5 million, other than for Transport for NSW where specific insurances apply.

Benefits for buyers are:

• immediate access and a greater choice of suppliers including regional, indigenous and small and medium sized enterprises
• ability to better leverage the available talent pool
• flexible arrangements including provision for adding new categories (buyers) and role types (suppliers)
• access to a supplier performance management framework which includes satisfaction reviews, invoicing accuracy, response times and system data collection requirements.