Contracting in Australia

**SarahL2012** · 27 July 2012, 12:45

Originally posted by DanB View Post

Good afternoon all,

I am heading to Australia in early November on a 417 Working holiday VISA and I will be looking to contract as a Senior SQL DBA/Developer whilst over there.

My question is, has anybody on here any experience as a contractor in this sector? (preferably, but any advice in other sectors would be gratefully received!):

Is it really feasible to IT contract on a Working Holiday Visa? I have read on this site that it is but i'd like to know any limitations if there are any.
Do you need to set your own Ltd firm up/work underneath an Umbrella as you do in the UK?
What have people that have are UK residents and have migrated to Australia done regarding taxing in work? I have read about double tax treaties but would appreciate any info people could give here

The long term plan would be to work as a permie in Oz, but considering I can't do this on this type of Visa I want to use my 6+ years as a DBA to save up and then travel!

Thanks in advance guys,
Dan

Can't comment on the IT side (lurking accountant) but I contracted in Australia (Sydney) under a working holiday visa about 10 years ago. I was paid by the agency on an equivalent to a PAYE basis as I couldn't be bothered with umbrella / limited for just 3 months (that was the longest you could work for any one company under the terms of the visa and I wanted to go travelling anyway), but a friend of mine used an umbrella type arrangement that another agency recommended to her.

Australia had a compulsory pension contribution in those days that was (I think) 6% on top of my day rate paid into a state pension scheme. You can get the money back out when you leave the country, but make sure you get all of the forms sorted before you exit Australia.

BTW - on a day rate to cost of living ratio Sydney is VERY expensive!

Travelling around Oz still rates as one of the best years of my life - don't miss the west coast, its stunning!

**SarahL2012** · 27 July 2012, 12:52

Originally posted by DanB View Post

[*]What have people that have are UK residents and have migrated to Australia done regarding taxing in work? I have read about double tax treaties but would appreciate any info people could give here

Missed this bit

If you work in Australia you have to declare that income on your UK self assessment return when you get home. HMRC calculate the tax owed at UK rates and then deduct the tax you have already paid over in Australia - so keep all your payslips etc.

No idea what the tax rates are in Oz, but if you pay more than you would have done in the UK then the rebate it just up to the maximum of the UK tax due. If the tax rates are less then you'll end up paying HMRC some more on the money you earn.

**DanB** · 27 July 2012, 14:42

Thanks for the response Sarah

I think the best case scenario is that I don't come back to the UK, but who knows eh?

It's good to hear that you can still do the PAYE on a fixed term in Oz too. This is what I currently do in the UK.

Thanks again for the info, much appreciated.
Dan

**stek** · 27 July 2012, 17:16

Originally posted by DanB View Post

Thanks for the response Sarah

I think the best case scenario is that I don't come back to the UK, but who knows eh?

It's good to hear that you can still do the PAYE on a fixed term in Oz too. This is what I currently do in the UK.

Thanks again for the info, much appreciated.
Dan

I think that you should bear this in mind - UK version of WHM (now Tier 5) which Commonwealth nations probably adhere too, is that ur should not 'pursue a career' while on WHM, just a thought, people to get caught with WHM and CV's in their bags....

**SarahL2012** · 30 July 2012, 12:31

Originally posted by stek View Post

I think that you should bear this in mind - UK version of WHM (now Tier 5) which Commonwealth nations probably adhere too, is that ur should not 'pursue a career' while on WHM, just a thought, people to get caught with WHM and CV's in their bags....

I didn't mention that I got pulled aside by Immigration when I first entered Oz on a WH visa and told in no uncertain terms what I could / could not do under the terms of the visa and what exactly would be done to me if I breached it! I was very jetlagged, feeling a little bit lost & homesick and then stepped outside the office straight onto the paw of one of the sniffer dogs - I nearly turned around and went straight back home again!

Very glad I didn't though.....

**Scoobos** · 30 July 2012, 15:04

Originally posted by stek View Post

I think that you should bear this in mind - UK version of WHM (now Tier 5) which Commonwealth nations probably adhere too, is that ur should not 'pursue a career' while on WHM, just a thought, people to get caught with WHM and CV's in their bags....

Personally, I'd take all of this and Aussie immigration with a big pinch of salt.

They are aggressive and power mad people, but its fake to say there are any restrictions on contracting in Aus on a standard Working Holiday Visa.

Also, if you do 3 months agricultural work, you can get a second year!

I know of MANY companies in Syndey who have hired via WHV contracts and then sponsored for full time employment over many years.

I got there without my bags after a straight 24 hour flight , and didn't get them for 3 weeks from Heathrow... bloody BA.

**Scoobos** · 30 July 2012, 15:08

Originally posted by SarahL2012 View Post

Australia had a compulsory pension contribution in those days that was (I think) 6% on top of my day rate paid into a state pension scheme. You can get the money back out when you leave the country, but make sure you get all of the forms sorted before you exit Australia.

BTW - on a day rate to cost of living ratio Sydney is VERY expensive!

Travelling around Oz still rates as one of the best years of my life - don't miss the west coast, its stunning!

From my experience , the first point is very valid - its called Superannuation (or "Super") and many agents try and roll it into your daily rate, when it's there responsibility to pay it.

I found day rate to cost of living to be much in my favour compared to the UK (I paid 450 a month for a flat with a swimming pool , in Edgecliff - pales in comparision to my 900 a month crappy flat here in the SE - and its supposed to be one of the most desirable areas of the city!).

Edgecliff, New South Wales - Wikipedia, the free encyclopedia

Contracting in Australia