Getting Paid

As a contractor you can be paid either on a PAYG (Pay As You Go) basis or via your own umbrella/limited company on an hourly/daily basis. If you are employed on a fixed term contract, you will most likely be paid a monthly pro-rata salary, direct from your employer.

Payment Structures

• PAYG is the traditional method of payment for an hourly/daily paid contract worker. Once we have secured you an assignment and agreed an hourly/daily rate, all you need to do is send your bank details to our payroll department and we will do the rest.
   
• Self Employed - If you are planning on contracting for a significant period, have elected to contract permanently or are in a senior position it may be beneficial to become self employed. There are a variety of options available to you, including the establishment of your own limited company or by the services of a professional contract management company such as Geoffrey Nathan or CXC Global. Professional contract management companies can assist you with getting a visa, salary packaging, LAFHA and all the appropriate administration and tax return submissions.  For more information on setting up your own limited company visit the Australian government website. Once set up and to avoid any delay in payment, you will need to submit your company details including bank account details, certificate of incorporation, GST registration, workers compensation insurance documents and professional indemnity insurance to your consultant before your assignment starts.

Tax & Superannuation for Contractors

If you elect not to be ‘self employed’ you will need to pay tax through the ‘Pay As You Go’ (PAYG) system which is deducted automatically from your pay every pay period. You will need to provide your ‘Tax File Number’ within 14 days of commencing your first assignment otherwise we are unable to pay you. If you are not from Australia and this is your first time working in the country, you will need a tax file number before you commence contract employment which can be obtained from the Australian Taxation Office. Self Employed Contractors are responsible for their own personal and company taxation and will need to keep their own records in order to support in the preparation of appropriate tax payments and annual submissions.

All workers in Australia are entitled to a retirement program (including pensions) known as superannuation. Employers are required by law, to pay an additional amount (based on a proportion of an employee's salary/wage - currently 9%) into a complying superannuation fund.

Contractors will need to provide us with the details of their specific superannuation fund so we are able to make the appropriate contributions. If you don’t currently have a preferred fund then we will establish one for you in the recruitment sector fund. Self-employed contractors are responsible for their own superannuation. Fortunately, the recruitment specialists at Morgan McKinley can make this easy for you. For PAYG contractors we'll arrange payment of your tax, the details of which will be reflected on your pay slip.

Eligibility to Work in Australia

Morgan McKinley can help you find work in Australia if you are eligible to work in Australia or have an appropriate visa. If you are not already an Australian citizen or eligible to work in Australia you will need to secure a working holiday visa (417) or a four year business sponsored visa (457). For more advice on visa’s please visit www.immi.gov.au or a professional contract management company such as Geoffrey Nathan or CXC Global. You will be required to bring your passport and work visa with you when you register with us.

Living Away From Home Allowance (LAFHA)

LAFHA is a tax free allowance developed by the Australian Government to offset additional expenses and/or inconvenience caused whilst an individual is living away from home for a defined period of time. Whilst we would need to assess your eligibility for LAFHA, it typically applies to contractors on working holiday (417) or four year business sponsored (457) visa’s. New Zealand citizens and in some cases Australian citizens working more than 130 km’s from their usual place of residence for periods longer than 21 days may qualify for LAFHA.