Reply to: Working in Australlia VISA - IT Contract

[itjobs]

Having had good time with contractorUK and bad time with NLUK, would you be posting your learnings to help others?

[missinggreenfields]

Just general observation... they should improve google

Who uses Google? All the cool kids rely on SKA / Majestic these days

[AndrewK]

Eh? I haven't commented on this thread in 2 months? Why you pick on me bro? I cared back then.

Just general observation... they should improve google

[northernladuk]

Worst thing is you google - and all results are "learn to google" or some pointless flame.
NLUK - you are creating noise with your answers and google's algorithm thinks that is actual answer....

Eh? I haven't commented on this thread in 2 months? Why you pick on me bro? I cared back then.

[AndrewK]

Worst thing is you google - and all results are "learn to google" or some pointless flame.
NLUK - you are creating noise with your answers and google's algorithm thinks that is actual answer....

[matt1927]

This is Contractor UK... Given that its a UK based website its highly unlikely anyone on here can answer the current situation regarding what visa is required to take a temporary contract in Oz.

Surely its better for someone to point this out and suggest looking elsewhere rather than leaving the OP in limbo waiting for a response that will never appear because no-one on this site knows (or cares) what is needed to legally work in Australia

Not true. I'm from the UK and moved to Australia 4 years ago.

I have a Working Holiday Visa however is this the right visa for contracting?

Companies put you further down the list with a WHV. Also worth bearing in mind you can only work 6 months max.

- What is best: Trading under my UK ltd company or setting up a new company in Australia

Not UK company. Doubt that's allowed. Ltd company type arrangement isn't really done as there are only small gains which dont really justify the effort. I've always been paid through an agencies pay roll.

- What sort of tax implications are there
Same deal as UK. You also pay a mandatory 9.5% into a pension which you can withdraw as a lump if you return to UK.

- Can I transfer money back to the the UK at the end of my stay and at what cost
Yep. I use Trasferwire.

Good luck.

[Mister Clark]

I'll add to what others have said and to give my own experience.
I was contracting in the UK for 8 years then come to Australia on a working holiday visa.

Working holiday visa will allow you to work a maximum of 12 months in the country but only 6 months at a time with any one organisation.
The primary purpose of the visa is not to enable you to work however so keep that in mind.

You can extend you visa to 2 total years if you work for a set period of time in a regional area - the idea is to attract workers into outback areas where they struggle to find labour.

Whilst on you working holiday visa you can contract but you will be paying take on a PAYG basis - read up on the 80/20 rule. It's similar to IR35 in that it's used to establish your tax status. In essence if 80% of you income comes from a single source (client) you pay tax at PAYG rates.

You will find it hard getting a contract on a working holiday visa unless they organisation genuinely only want someone for 6 months.
As a contractor you will likely need to pay a pay roll company to manage your wages. Figure 2-3%.

A sponsored 457 visa is more likely get you into the country medium to long term but you are tied to that employer, and of course you need to find a company to sponsor you.

If you leave that employer you need to find another sponsor with 90 days (it used to be 30 as mentioned in another post), this has changed.

Whilst there are companies that will hold your 457 so you can contract these are rare and they will charge you somewhere in the region of 10% of your day rate for the privilege. I've also found potential clients run a mile when you tell them you're thinking of going down this road due to the risk/time it takes to transfer the visa.

The only option to have true freedom of movement is to get a permanent residency visa.

If you can go down this route (it's points tested unless you go via an employer sponsored route which requires you to work a minimum of 24 months with an authorised employer) you will be liable to pay tax on worldwide income - PR means that you are a permanent resident and a tax resident.

457 is a temporary visa therefore you are a tax resident but not a permanent resident. In this scenario only salary earned outside of Australia is taxable so you won't pay tax on, for example, dividends or money derived from renting a property out abroad.

You won't be able to use your UK limited.

Contractor rates are usually inclusive of super (pension) at 9.5%; salaries are usually plus super (read the fine print).

[rich2476]

Thanks rich2476! some good pointers, and what I was looking for in this post

Did you contract while over there?
Do you know of any good companies to use that deal with contractors?

Cheers
Matt

I was contractor for most of my time in oz. Last few years I was perm as I couldn't get a mortgage as a contractor. For years as I was a non-resident for tax so only being a resident for a short period of time + contractor = no mortgage

Most of the big agencies will be used to contractors and my agent sponsored me for a 457 visa (I had to pay the visa cost). Your only problem with a 457 visa once you finish that contract you only have 30 days to find another role via the same agent (as your visa is with the agent not you) otherwise you need to leave the country.

For roles have a look on - SEEK - Australia's no. 1 jobs, employment, career and recruitment site (Don't forget the rates may look good but Sydney + Melbourne the cost of living is higher than London)

[mwyld]

Thanks rich2476! some good pointers, and what I was looking for in this post

Did you contract while over there?
Do you know of any good companies to use that deal with contractors?

Cheers
Matt

[rich2476]

oz

- I have a Working Holiday Visa however is this the right visa for contracting? -

Yes / No - Technically you can contract on it but not many companies will be interested unless you have a sponsored visa 457 or a perm resident. I worked in oz for 10 years and the market has changed a lot in that time, they are currently big into off shoring and competition is tough for local roles so with a working holiday visa you will be at the back of the q

- What is best: Trading under my UK ltd company or setting up a new company in Australia - They won't let you trade with your UK company. You won't be able to setup an Australian company as you are not a resident. The agent will pay you and also deduct super annuation (pension) which you can claim back after you leave the country.

- What sort of tax implications are there - Depends when you go and come back... not a straight forward one to answer


- Can I transfer money back to the the UK at the end of my stay and at what cost
Yes you can - Depends who you use. I used to use HiFX

Many thanks
Matt[/QUOTE]

Answers above

[missinggreenfields]

Hi,

I'm looking to go work out in Australia for a year or two as a contractor and have a few questions:

- I have a Working Holiday Visa however is this the right visa for contracting?
- What is best: Trading under my UK ltd company or setting up a new company in Australia
- What sort of tax implications are there
- Can I transfer money back to the the UK at the end of my stay and at what cost

Many thanks
Matt

There's a lot of good information out there for contractors, including the CUK guides and others - I'd start here and see how you go.

[WTFH]

Working in Australlia VISA - IT Contract

Hi,

I'm looking to go work out in Australia for a year or two as a contractor and have a few questions:

- I have a Working Holiday Visa however is this the right visa for contracting?
- What is best: Trading under my UK ltd company or setting up a new company in Australia
- What sort of tax implications are there
- Can I transfer money back to the the UK at the end of my stay and at what cost

Many thanks
Matt

1. A subclass 417 visa will allow you to work for up to 12 months - maximum of 6 months with any one company, as long as you are 18-30. It does not allow you to stay for more than 12 months, so if you were planning to go for 2 years, you've got the wrong visa.
2. This visa is for individuals, not businesses. In other words you can't trade under your UK ltd, nor can you set up a company in Australia. If you want to work through a company, you've got the wrong visa.
3. Depending on how you plan to work and for how long, you would need to speak to either a UK accountant who understands working abroad, or an Australian accountant who understands taxation for foreign workers.
4. You can transfer money, remember you are an individual, not a business, and you will be paying personal income tax on the money. Once the tax is paid you can do what you want with it.


You also need to demonstrate that you have about £3000 in your personal bank account to support yourself when you arrive in the country.

[cojak]

NLUK - We all know how to google things, I was hoping to perhaps hear from UK contractors who have been to (or have knowledge of) australlia who could share there experiences, and what better then to ask a community of UK contractors? I agree a little more information is required, but I did not expect your crude and irrelevant responses bloating this post and completely agree with saptasic on why some people get put of posting.

And I agree. NIUK's posts are not the standard I expect in a Professional forum.

[mwyld]

NLUK - We all know how to google things, I was hoping to perhaps hear from UK contractors who have been to (or have knowledge of) australlia who could share there experiences, and what better then to ask a community of UK contractors? I agree a little more information is required, but I did not expect your crude and irrelevant responses bloating this post and completely agree with saptasic on why some people get put of posting.

[northernladuk]

Completely agree with you eek. It should be pointed out. Maybe no one has the answers here.
However response of "Congrats on putting so little effort in to do little research and asking a question that's going to take a small book to answer properly. You've excelled yourself there" is not pointing this out and just turns people off from asking questions.

But the OP wants a full blown guide on contracting in Australia covering multiple complex areas that need a lot of explaining and are dependant on a host of factors we don't know in just 4 lines. He's never going to get that anywhere. People just don't like answering lazy questions whatever forum it is.. For example.

Googling 'Working holiday visa australia' brings pages up like this one that clearly explain the limitations on the visa.
Australian Working Holiday Visa - Working Holiday Visa Australia: Working in Australia

What we don't know is the OP's plans for being out there? His age and other limitations to the visa so he can actually answer his own question at this point. That said he might want to add 'contracting' on to the end of that which brings up a couple of interesting threads.
In amongst the 1000's of results a few sites of interest appear.
This site comes up which might actually be more useful and worth a look
Jobs and work - Living and Working in Australia Forum With Immigration and Travel Information
And oddly there are a couple of results from a certain forum which might be worth a close look so lets search that forum.
https://www.google.co.uk/search?q=au...d35tGABvP7tcAC

Well that's a lot of great information to look at. I've a feeling that many of the threads will start to answer his questions but I bet they aren't listed in oneliner bullet points like the OP's question so sadly he's going to have to do a bit of leg work. Tough life innit.

And that took me about 30 seconds.... You getting me now? Maybe if he'd read all that and come back with some specific questions he might of gotten somewhere.