Contracting in Australia

[vhadiant]

My Opnion Honestly ? (I contracted in Londonium from 94-2001) London is better.

Living in Sydney is a lifestyle choice. Money wise, after expenses adjustment etc.,London is better.

[rootsnall]

Living in Sydney is a lifestyle choice. Money wise, after expenses adjustment etc.,London is better.

Good summary ! When I used to do stints in Sydney I planned on breaking even only. And I don't think rates have gone up much since then and costs certainly have risen.

[gadgetman]

Thanks. I read that in full and it mainly seems to be about clarifying a few items such as what qualifies as usual residence/abode and whether receipts etc are required.

I can't see anything in there which implies they are tightening up or removing the allowance. From my reading of the rules I would seem to qualify as long as I was maintaining my place in the UK with the intention to return there eventually.

I have requested confirmation of this from the umbrella outfit I've been dealing with.

Incidentally Ayers have now ignored two requests for information. Not a good sign...

I was sure it was in one of the alerts - but I can only see a withdrawn alert from 2002.

I'll see what I can find.

Edit: http://law.ato.gov.au/atolaw/view.ht...2&pn=ALL:::ALL

[beaker]

Hey guys, there's really no reason to use an umbrella in Oz. Also, there's really no benefit of using ltds.

Most agencies will pay you PAYE, you keep about 65%. Agencies may also offer salary packaging (allowing you to claim other expenses eg. a car as a tax deduction), but fringe benefit tax sometimes applies so check with an accountant if it's worthwhile. You can claim living away from home allowance if your'e renting (not buying). This makes your rental expenses tax deductible. Just get yourself an accountant, let them know you're going to be doing some contract work and ask them any questions.

Enjoy the weather and laid back way of life. I will be later this year!

[beeker]

two beekers in Oz then!?

Perth is isolated yes, but it has a lot to offer so what more do you want? If I want to go travelling I can. For me, coming from the north east of Scotland - any other city is a welcome change!

[barely_pointless]

One big difference here is that the Taxman does not recognise training for potential income, for example, if you are say a c++ programmer, who wants to say break into investment banking, so you go on a few {quality} IBB business courses to get the ideas, concepts and so forth. Taxman here says no no, it's not related to current income so you can't do it.

Unlike the UK where the Taxman allows related training expenditure.

or has that changed ?

[beaker]

One big difference here is that the Taxman does not recognise training for potential income, for example, if you are say a c++ programmer, who wants to say break into investment banking, so you go on a few {quality} IBB business courses to get the ideas, concepts and so forth. Taxman here says no no, it's not related to current income so you can't do it.

Unlike the UK where the Taxman allows related training expenditure.

or has that changed ?

I don't think that's changed.

[barely_pointless]

I don't think that's changed.

Yeah, that is a real shortcoming here in Oz, I cannot pay a cent on any training that may open up new markets, fine if I want to chuck a few K's at some numpty teaching me how to point and click the latest ERP wank, (most of which I would pick up in job anyway) but I can't say go on an Operational Research workshop held by a global leader in solving logistics problems which costs a few K for a day workshop, make new contacts and actually learn something and claim it against tax = not possible.

For those of you wishing to come to oz, get trained in Europe before you come here.

Oz = run by accountants = no creative capability whatsoever.

[gadgetman]

I got a reply to an email to one of the larger agencies in Melbourne. They seem confident on placing me in my sector based on my previous experience. Of course as with all agency claims this has to be treated with caution...

Anyway for anyone else interested in general this is the relevant part:

"Contracting is quite straight forward, you can go through the agency PAYG (similar as PAYE in UK) or set up a company and ABN and gain tax advantages probably similar to your current circumstance, or finally go through a contractor management company and they can do you tax, LAFHA and manage more cash in you pocket."

This confirms what I've managed to find out here and on other sites, although I still have no detail on the ABN route.

Think I'm going to take the third option which is what the other outfit gave me the quotes on. Sounds like the best way until we want to buy or go for residency.

[beeker]

I got a reply to an email to one of the larger agencies in Melbourne. They seem confident on placing me in my sector based on my previous experience. Of course as with all agency claims this has to be treated with caution...

Anyway for anyone else interested in general this is the relevant part:

"Contracting is quite straight forward, you can go through the agency PAYG (similar as PAYE in UK) or set up a company and ABN and gain tax advantages probably similar to your current circumstance, or finally go through a contractor management company and they can do you tax, LAFHA and manage more cash in you pocket."

This confirms what I've managed to find out here and on other sites, although I still have no detail on the ABN route.

Think I'm going to take the third option which is what the other outfit gave me the quotes on. Sounds like the best way until we want to buy or go for residency.

Any chance of letting us know which agency gave you the good advice? I'm going to Perth - dunno how much "intercity" work Agencies deal with but would appreciate the info!

cheers!
beeker.