Companies also pay 30% tax so keep that in mind. Set up costs are around $2500+gst if I recall correctly and you get an ABN and ACN.
Several agents in Melbourne only deal with companies from our experience. Sole traders don’t have to pay super which can be a good or bad thing. On Sun, 23 Jun 2019 at 13:13, Greg Low <[email protected]> wrote: > I’ve always had a company and have to say I can’t imagine not doing so, > but YMMV. > > I think it’s the most flexible by far. > > Mind you, I don’t look for long term gigs, otherwise the 80% rule, etc. > around personal services starts to be an issue. As soon as you want other > employees, etc, I would only use a company. > > 10M for both prof and prod liability isn’t too expensive. So many of our > customers want it so it’s a no brainer. Someone recommended BizCover a long > time back, we’ve used them, and they’ve been ok to deal with so far. Gets > cheaper the longer you have it without any claims. > > Regards, > > Greg > > Dr Greg Low > SQL Down Under Pty Ltd > Mobile: +61419201410 Office: 1300775775 > > ------------------------------ > *From:* [email protected] on behalf of Stephen Price < > [email protected]> > *Sent:* Sunday, June 23, 2019 12:32 pm > *To:* ozDotNet > *Subject:* Re: [OT] Contracting advice for payroll > > I might also add, that the easiest option is to just go with the PAYG > option. You pay tax as you go, so don't have to pay the ATO at some later > date (and realise you didn't keep any aside...) and there is also GST you > would have to collect and submit either annually or quarterly (but if the > amount is under a certain amount per year then you don't have to collect > GST)... forget what that amount is currently. I'm registered currently (for > side gigs) but the amount is less than their threshold... if its under, its > up to you if you do collect it or not but if its over it, then you have to. > Its less to think about if you go PAYG with your first contract. > Oh, as a sole trader you get an ABN (also as a company) which is the main > requirement. I think if you go the PAYG route then all of the tax stuff is > done as yourself using your tax file number. Get a good accountant, it's > worth it. Might spend extra money on the accountant, but they know the > stuff you can claim etc and you end up saving way more in taxes, plus they > keep up to date on the regular rule changes... crazy not to, unless you > like giving your money away. if so, I'll send you my bank account > details... hehe > ------------------------------ > *From:* [email protected] <[email protected]> on > behalf of Tom P <[email protected]> > *Sent:* Sunday, 23 June 2019 8:28 AM > *To:* ozDotNet > *Subject:* [OT] Contracting advice for payroll > > Hi folks > > This is the first time I will be in a contracting role. I've done some > digging around payroll options but wanted to check with any contractors > here about their experiences and recommendations. > > There seems to be three options: (1) PAYG where the recruitment agent does > it all, (2) set up my own company, or (3) use a management company. > > Any advice from the contracting pros? > > Thanks > Tom >
