Question about IT Contracting And Agencies?
Jul 30th 2002, 2:40 pm
#1
Just Joined
Thread Starter
Joined: Feb 2001
Posts: 26
Question about IT Contracting And Agencies?
Hi,
Can anyone help with information on how the contract agencies work in Australia? I have been an IT contractor for 10 years here in Canada and I’m wondering what the difference is in Sydney.
Are taxes, insurance etc handled by the agency?
What are the main differences between IT Contracting in Canada compared to Australia?
Many Thanks
Rona
Can anyone help with information on how the contract agencies work in Australia? I have been an IT contractor for 10 years here in Canada and I’m wondering what the difference is in Sydney.
Are taxes, insurance etc handled by the agency?
What are the main differences between IT Contracting in Canada compared to Australia?
Many Thanks
Rona
Jul 31st 2002, 6:20 am
#2
Guest
Posts: n/a
Re: Question about IT Contracting And Agencies?
How does IT contracting happen in Canada ? Practically with an agency ?
Anne
Anne
Jul 31st 2002, 7:06 am
#3
Just Joined
Joined: Jun 2002
Location: Perth
Posts: 16
Re: Question about IT Contracting And Agencies?
Hi Rona,
I don't know about Canada, but I have contracted in both UK and Oz and they're both pretty similar now. If you have, say a 6 month contract through an agency, with a single client, then from the taxman's viewpoint, you're an employee. You'll get taxed on your gross fees, less allowable expenses (generally, the taxation law that covers this is called "Alienation of personal services income", here's the link to more at the ATO:
http://www.taxreform.ato.gov.au/DocT...ment=TR/BT/ALN ).
The agency will deduct their commission, then will probably have to pay 9% of the net into your nominated superannuation fund. I believe most agencies have their own insurance cover, so you shouldn't have to pay for employer's liability cover etc (but best to check).
In my experience, I have never found a good case for establishing a company just to do IT contracting - it can be quite expensive and still has no tax advantage unless you derive income from multiple sources.
Hope this helps, I do have some other info and links on my website for migrants: www.aussiemove.com
Geoff
[email protected]
www.aussiemove.com
Please note: I am not a tax or financial advisor, nor am I qualified in these fields - all this is just from personal experience.
I don't know about Canada, but I have contracted in both UK and Oz and they're both pretty similar now. If you have, say a 6 month contract through an agency, with a single client, then from the taxman's viewpoint, you're an employee. You'll get taxed on your gross fees, less allowable expenses (generally, the taxation law that covers this is called "Alienation of personal services income", here's the link to more at the ATO:
http://www.taxreform.ato.gov.au/DocT...ment=TR/BT/ALN ).
The agency will deduct their commission, then will probably have to pay 9% of the net into your nominated superannuation fund. I believe most agencies have their own insurance cover, so you shouldn't have to pay for employer's liability cover etc (but best to check).
In my experience, I have never found a good case for establishing a company just to do IT contracting - it can be quite expensive and still has no tax advantage unless you derive income from multiple sources.
Hope this helps, I do have some other info and links on my website for migrants: www.aussiemove.com
Geoff
[email protected]
www.aussiemove.com
Please note: I am not a tax or financial advisor, nor am I qualified in these fields - all this is just from personal experience.
