IT Contracting and PSI

[burlistic]

Does anyone have advice on IT contracting in Australia?

 

I have been working as a contractor with a limited company for a number of years in the UK. I typically have contracts with 1 to 4 different clients a year. My specially is Agile coaching and development on the .NET stack.

 

Now that I have my visa and flight booked I have been doing research and the PSI rules seem pretty locked down with regards to tax benefits of freelancing.

 

I have read all the obvious stuff but would appreciate some practical advice.

 

Is contracting worth it in Australia (specifically Perth)? Do you earn enough extra to make it worth your while?

 

Do most IT contractors operate within PSI? Are they any obvious conditions that mean I can continue to operate as an independent business?

 

Any advice would be appreciated.

[NickyNook]

If you really do have more than one client in a year, then it might be worth setting up an independent company.

 

If you don't, then it definitely isn't worth it.

 

I'd hazard a guess and say that most IT contractors - the ones that like long contracts - don't bother any more. I closed my company down as the paperwork and expense involved for zero financial gain wasn't worth it.

 

As for contracting in general being worth it? - In my case definitely. But of course it all depends on what rate you can get.

[Bibbs]

I'm a contractor in Perth. Only have 1 client really, so am looking for others (or a friend to join me).

 

I have a Company.

 

The team I work in, all of us are contractors (about a dozen of us).

 

Check the Robert Walters Salary Checker (has an app too) for an idea on rates.

 

Snr Dev is on $75 - $95 an hour contract, or $90k - $125k as a Permi.

40 hours weeks, 4 weeks holiday. So $75 x 40 x 48 = $144k .. as you can see, the rates are very different

[burlistic]

Thanks for the feedback. I would like to stay as a contractor if viable.

 

Bibbs do you and your colleagues operate outside of PSI? If so, how?

 

I have spoken to Deacon accountants and the advice they have given points towards operating as a PSI contractor. It would be great to retain the benefits I enjoy whilst operating as an indepentant in the UK.

[Bibbs]

I honestly don't know about PSI. I just work, invoice, and pay my tax every 3 months.

[burlistic]

I have came across info regarding the 80% rule which puts me at ease a bit. I normally have a few different unrelated clients a year, so it looks like I can continue to operate as my own business (or trust).

 

http://www.ato.gov.au/Tax-professionals/BAS-agents/In-detail/Key-resources-for-clients/Tax-basics-for-small-business/?page=59#Working_out_if_the_PSI_rules_apply_to_you

 

Hoping to do further research and finish getting everything set up. Looking forward to joining the Perth contract market. Thanks for your advise Bibbs. Knowing there are contractors in work helps put me at ease. The last thing I want is to move out there and struggle with finding work as I am the only earner and have a young family to support.

[Bibbs]

I will advise it's a mixed bag at the moment. I'm a Developer and there are plenty of people looking.

 

But Perth being a small market, it's easier to be a big fish. If you are honestly good at what you do, you shouldn't have an issue.