Contract Your Way

Pty Ltd, or Company Contracting is an ideal option if you prefer the flexibility and control of running your own company.

As a Pty Ltd company, you'll need to:

• Register your ABN for GST

• Be incorporated – have an ACN

• Provide and administer worker compensation insurance

• Acquire Professional Indemnity and Public Liability Insurance.

• Paxus can supply this for you at competitive rates

• Administer your own and any company employees’ superannuation

• Complete BAS statements as required for the ATO

• Administer any work cover claims

• Contract under the increasing legislative challenges associated with the Alienation of Personal Service Income test (also known as the 80/20 rule)

• Adhere to any legislations

  In order to comply with the above requirements, you may need to work with your accountant to set up the company. If you don’t have your own PI/PL cover, you can access the Paxus cover for a nominal 1% of your contract rate.

What costs are involved?

There are varied costs involved, including your time, to self-manage contracting as a Pty Ltd. We recommend carefully consulting with your accountant before choosing this option. Before you start as a Pty Ltd contractor, we simply need to verify your company.

Under legislation, you will need to complete and provide us with the following paperwork:

• Signed contracts (two signatures required)

• All relevant paperwork in the Pty Ltd Induction Pack

• A copy of your company Workers Compensation Certificate

• A copy of your ID as evidence of your eligibility to work in Australia (Passport or Birth Certificate and Photo ID)

• Company bank account details

• A copy of your ABN number and ACN copy of company certificate

• Public Liability and Professional Indemnity Cover

Management companies are ideal for high earning contractors who can afford the fee structures and want the same financial benefits of Pty Ltd contracting without the associated risks and time spent doing it yourself.

Specialist contractor management companies provide services to independent contractors that can perform a wide variety of tasks, including:

• A company tax structure to work with

• Tax advice

• Administration support

• Workers compensation, public liability and professional insurances

What costs are involved?

Fees vary from company to company. Generally these costs can be up to 3-7% of your rate.

Before you start, make sure you have registered with a contractor management company and that they have provided the correct paperwork to be submitted to us in order to get paid on time.

If you have any questions regarding this type of contracting, please contact your accountant for advice on selecting the best contracting method for you.