Contracting in Australia

[gadgetman]

That site looks like it for the other way round i.e. contractors wishing to work in the UK (??)

If you could find an equivalent for Oz that would be ideal.

As for the visa, my wife is a midwife and can pick and choose jobs out there. She's interviewing for jobs next month and the visa comes with the package. We've been told that her visa (3 or 4 years) will allow me to work so I'm hoping this is not an issue.

found this:
http://www.hays.com.au/overseas/starting.aspx
Might be of use to anyone browsing this thread.

[beeker]

correct - but it did have some info on relating your NI number with their tax number etc...

I'd have thoguht there might be somethign similar for IT jobs in teh UK but to date i've not found any event which I can attend that firms requiring IT people would be represented at.

My missus is a teacher and has been assured that temp work over there will be fine on a working holiday visa.

Anyone point us in the direction of any events to attend which may have IT representation?!

[gadgetman]

Been speaking to an outfit in Australia who handle visas and operate the equivalent of an umbrella.

They claim there's a "living away from home" allowance of up to 30% of gross income which can be taken off before tax. They also mentioned fees of 3 to 5%, a payroll tax if you go direct (6%?) and superannuation payments of 9%.

They don't withhold anything for holidays or sick pay like UK brollies do and they are sending me a spreadsheet to enable calculation of net income.

Knowing the 'dispensation' tactics of UK umbrellas I questioned this allowance and was assured that it was completely legit.

Anyone know for certain if this a smoke and mirrors equivalent of 'dispensations' or is it for real?

I'm happy to go the equivalent of the limited company route if it is worthwile but can't find out what the implications of the 80/20 law are in terms of tax liability.

[Moscow Mule]

Been speaking to an outfit in Australia who handle visas and operate the equivalent of an umbrella.

They claim there's a "living away from home" allowance of up to 30% of gross income which can be taken off before tax. They also mentioned fees of 3 to 5%, a payroll tax if you go direct (6%?) and superannuation payments of 9%.

They don't withhold anything for holidays or sick pay like UK brollies do and they are sending me a spreadsheet to enable calculation of net income.

Knowing the 'dispensation' tactics of UK umbrellas I questioned this allowance and was assured that it was completely legit.

Anyone know for certain if this a smoke and mirrors equivalent of 'dispensations' or is it for real?

I'm happy to go the equivalent of the limited company route if it is worthwile but can't find out what the implications of the 80/20 law are in terms of tax liability.

Have a look at the ATO website - they are about to close this "loophole" IIRC.

[gadgetman]

I can't even find a mention of the allowance on the ATO site, let alone proposals for changing/removing it.

I did the obvious searches and browsed through all of the allowances sections but couldn't find it. Any pointers?

I have now received the spreadsheet I mentioned and based on the LAFHA (Living Away From Home Allowance) they quote it looks like I would net about 65% which is about what I get here.

However, being a sceptical old bugger I'm going to research this a bit more. For example, an old article on Brainbox implies that the allowance is based on additional costs from what I would pay in the UK so for example with a mortgage in the UK this would cover rent in Oz. From this though I presume that buying somewhere in Oz would remove my eligibility but its not clear. I really need a decent Australian accountancy/tax firm specialising in contractors to throw these questions at.

I'm also still finding it hard to get info about operating as a Ltd (or equivalent) over there.

You had any luck beeker?

Have a look at the ATO website - they are about
to close this "loophole" IIRC.

[Moscow Mule]

I can't even find a mention of the allowance on the ATO site, let alone proposals for changing/removing it.

I did the obvious searches and browsed through all of the allowances sections but couldn't find it. Any pointers?

I have now received the spreadsheet I mentioned and based on the LAFHA (Living Away From Home Allowance) they quote it looks like I would net about 65% which is about what I get here.

However, being a sceptical old bugger I'm going to research this a bit more. For example, an old article on Brainbox implies that the allowance is based on additional costs from what I would pay in the UK so for example with a mortgage in the UK this would cover rent in Oz. From this though I presume that buying somewhere in Oz would remove my eligibility but its not clear. I really need a decent Australian accountancy/tax firm specialising in contractors to throw these questions at.

I'm also still finding it hard to get info about operating as a Ltd (or equivalent) over there.

You had any luck beeker?

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

[rootsnall]

I'll see what I can find.

I think you'll find the situation is a bit like here with IR35 and the like and depends who you talk to, how much risk you want to take, etc etc Therefore the past experiences of other people who have been over there are of limited use.

I'd get your ar*e over there and work through an umbrella initially but make sure you aren't committing to anything you can't get out of with a bit of notice. There are a few shark like accountants over there. It's also quite a small contract market hence the big umbrella margins when they can get away with it.

ps. is anybody getting the Tarpon emails, same old sales pitch !?

[beeker]

I'm going to get my feet in the door under an umbrella or such like first of all and then see whats what and talk to the guys there doing it etc. Gives me a lot less stress when I immdeiately get there.

Got the years working visa within 24hrs so am all set for taking off AUgust time. I'm not too fussed about limited co. over there, just going to get there and wing it for a while before making my mind up about that kind of jazz.

[max]

I'm hoping that as it's the 'back of beyond' most overseas contractors will give it a miss. I can't turn down the free accomodation and transport (family friends), I can always use it as a base and see how the cookie crumbles.

Perth IS really "back of beyond", it is the most isolated city in the world

Do google on "most isolated city in the world", and all results are Perth.

http://www.google.co.uk/search?hl=en...G=Search&meta=

[barely_pointless]

I came out to oz as a contractor in 2001, sponsored by Ayers, all things being equal, they do what it says on the tin. They had a real beancounter Irish chic who used to give me grief on my expenses every month, but other than that they pay on time and don't do much else.

Setup a ltd in 2004, primarily for public liability and workcover, aside from the PI and cashflow benefit, it's a complete pain in the a%$ to administer, I use electronic reporting/tax/etc and even that is a pain.

No benefits here on having a Ltd, other than the PI, you can choose to pay yourself 80% of total income, and the tax office will just say , nah mate you're liable for the 100%.

No dividend distribution is worth it in that sense, there are few and "charges" that are levied on companies, not to mention the compliant superannuation %.

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

I'm in Sydney.