The new buzz-phrase in Australia is "skills crisis" and today comes news that yet another industry is finding itself short of skilled workers.Sydney's most popular brothels face losing more than a quarter of their prostitutes this year.The problem has arisen due to the position taken by The Australian Tax Office, who instead of taking a laid back attitude, are spanking a number of Sydney brothels. The owners are being told they are responsible for collecting GST (Goods and Services Tax) and withholding income tax for their workers.
The Sydney Morning Herald quotes the owner of one establishment as saying, "Whenever the ATO comes in and asks about service providers, they [sex workers] go straight out the back door and into the illegal industry."
The tax laws governing the sex industry are bound in red tape and revolve around the question of whether prostitutes are employees or independent contractors, and whether they are engaged by brothels or clients.
I did want to speak to someone from the tax office about this matter, but I was told they were tied up at the moment.
