freebo Posted April 26, 2010 Share Posted April 26, 2010 Hi, I'm moving over in a couple of weeks and luckily have an initial 6 month contract lined up at what looks like a decent rate. The agency I'm working through is offering to pay me PAYE and have sent me figures which line up with normal tax. Do contractors in Australia generally work PAYE? I've had a LTD company in the UK for years and there are tax advantages to be had by doing so but these look much more limited in Australia, can I structure any other benefit from contracting in Australia (company car, home office, deffered income etc?). I know I'll need to get professional advice but as I'm starting all over again any pointers would be great. Thanks, Mike Link to comment Share on other sites More sharing options...
Guest Posted April 26, 2010 Share Posted April 26, 2010 Hi,I'm moving over in a couple of weeks and luckily have an initial 6 month contract lined up at what looks like a decent rate. The agency I'm working through is offering to pay me PAYE and have sent me figures which line up with normal tax. Do contractors in Australia generally work PAYE? I've had a LTD company in the UK for years and there are tax advantages to be had by doing so but these look much more limited in Australia, can I structure any other benefit from contracting in Australia (company car, home office, deffered income etc?). I know I'll need to get professional advice but as I'm starting all over again any pointers would be great. Thanks, Mike Hi Mike I have sent you a PM Thanks Steve Link to comment Share on other sites More sharing options...
Guest kingy79 Posted May 16, 2010 Share Posted May 16, 2010 Hi, Please can you share your information/experiences. I have just arrived and secured a 6 month contract with possible 12 months. I have the option of going through the agency as PAYG or using a management company who can offer salary packaing but dont really know if it is worth it? look forward to hearing from you Kingy Link to comment Share on other sites More sharing options...
freebo Posted May 16, 2010 Author Share Posted May 16, 2010 Hi, Please can you share your information/experiences. I have just arrived and secured a 6 month contract with possible 12 months. I have the option of going through the agency as PAYG or using a management company who can offer salary packaing but dont really know if it is worth it? look forward to hearing from you Kingy I'm going with the agency for now but will carefully review the situation. I didn't see the value in packaging, but I will be paying cash for my car. Link to comment Share on other sites More sharing options...
B1K3R Posted May 16, 2010 Share Posted May 16, 2010 Very interesting post. I am planning to do contracting as well but need to see how the whole thing works. So, anyone sharing any info will be very appreciated Thanks!!! B1K3R Link to comment Share on other sites More sharing options...
kissofthegypsy Posted May 16, 2010 Share Posted May 16, 2010 Kingy and Freebo, I have been contracting for the last 9 months in queensland. If you are on 457s, I can help you save a fortune. PM me. Cheers Sean Link to comment Share on other sites More sharing options...
freebo Posted May 16, 2010 Author Share Posted May 16, 2010 Kingy and Freebo, I have been contracting for the last 9 months in queensland. If you are on 457s, I can help you save a fortune. PM me. Cheers Sean You're talking about Living Away From Home Alowance (LAFHA) I guess, but I'm here on a permanent resident visa, not a 457. If you know any other ways to save tax I'd love to hear them! Link to comment Share on other sites More sharing options...
Guest kingy79 Posted May 16, 2010 Share Posted May 16, 2010 I'm going with the agency for now but will carefully review the situation. I didn't see the value in packaging, but I will be paying cash for my car. Hmmm, i'm looking at Leaders in contractor management & payroll solutions i think i'm coming to the same conclusion as a lot of the items to apply for dont see applicable so does not warranty the 2-3% charges! I dont need a car at the moment and if i get one, it would only be a banger! I can also do salary sacrifice for a latop through the agent and they provide me with insurance. i will speak to them about providing me a full breakdown though. cheers Link to comment Share on other sites More sharing options...
freebo Posted May 16, 2010 Author Share Posted May 16, 2010 Very interesting post. I am planning to do contracting as well but need to see how the whole thing works. So, anyone sharing any info will be very appreciated Thanks!!! B1K3R there is also the option of forming your own Ltd co, which I've been operating in the UK for many years, AFAIK its not worth it here though, most of the perks can't be done (employing the wife, small salary big divs etc). As I said I'm brand new at this (start my first Australian contract in the morning) so I may be wrong! Link to comment Share on other sites More sharing options...
Guest kingy79 Posted May 16, 2010 Share Posted May 16, 2010 I've a consultation with them tom to see what they can offer - will let you know what i find out. Good luck for Monday, i'm hopefully starting Weds!! Link to comment Share on other sites More sharing options...
B1K3R Posted May 16, 2010 Share Posted May 16, 2010 there is also the option of forming your own Ltd co, which I've been operating in the UK for many years, AFAIK its not worth it here though, most of the perks can't be done (employing the wife, small salary big divs etc). As I said I'm brand new at this (start my first Australian contract in the morning) so I may be wrong! Yes, that's exactly what I had in mind....heh, thats bad news mate. We'll see how it goes. Oh, and good luck for tomorrow! :wink: Link to comment Share on other sites More sharing options...
kissofthegypsy Posted May 16, 2010 Share Posted May 16, 2010 Hmmm, i'm looking at Leaders in contractor management & payroll solutions i think i'm coming to the same conclusion as a lot of the items to apply for dont see applicable so does not warranty the 2-3% charges! I dont need a car at the moment and if i get one, it would only be a banger! I can also do salary sacrifice for a latop through the agent and they provide me with insurance. i will speak to them about providing me a full breakdown though. cheers I contract through and agency and cxc package my wage whichworks out a lot better than simply going through an agency who dont usually offer the packaging ability. You are able to complete and use a WREE (Work Related Expenses Exemption) form and have your deducatable income reduced by the amount of business expenses you state. Car novation is a hugh bonus for me also as I do over 40k a year so the pre tax benefits make it very worthwhile. Also through CXC, I was able to get a 6 month employment letter for my mortgage which was a hugh winner as I didnt have to go with a low doco loan. PM me if you need some contact details? Cheers Sean Link to comment Share on other sites More sharing options...
freebo Posted May 16, 2010 Author Share Posted May 16, 2010 I contract through and agency and cxc package my wage whichworks out a lot better than simply going through an agency who dont usually offer the packaging ability. You are able to complete and use a WREE (Work Related Expenses Exemption) form and have your deducatable income reduced by the amount of business expenses you state. Car novation is a hugh bonus for me also as I do over 40k a year so the pre tax benefits make it very worthwhile. Also through CXC, I was able to get a 6 month employment letter for my mortgage which was a hugh winner as I didnt have to go with a low doco loan. PM me if you need some contact details? Cheers Sean I'll sent you a PM. I spoke to CXC and a few others, they want to charge 3-5% of my gross rate and I couldn't justify the benefit. My agency is taking 0%, not packaging my salary but covering all the insurances (PA/PL etc). If you do 40,000km a year I'm sure the car is well worthwhile though, I'll be doing 15-25,000km and at that level the beneifit is marginal, and I'll still be paying interest on the lease and Fringe Benefit Tax too so I think I'm better off buying my new car in cash. Note for BIK3R and others, the tax you pay on a salary packacked car is down to the total (not just business) miles you do each year, this encourages you to drive as much as possible, I've even heard of people spending the weekend driving for no reason or loaning their car to friends for long trips, just to reduce the tax! Link to comment Share on other sites More sharing options...
kissofthegypsy Posted May 16, 2010 Share Posted May 16, 2010 I'll sent you a PM. I spoke to CXC and a few others, they want to charge 3-5% of my gross rate and I couldn't justify the benefit. My agency is taking 0%, not packaging my salary but covering all the insurances (PA/PL etc). If you do 40,000km a year I'm sure the car is well worthwhile though, I'll be doing 15-25,000km and at that level the beneifit is marginal, and I'll still be paying interest on the lease and Fringe Benefit Tax too so I think I'm better off buying my new car in cash. Note for BIK3R and others, the tax you pay on a salary packacked car is down to the total (not just business) miles you do each year, this encourages you to drive as much as possible, I've even heard of people spending the weekend driving for no reason or loaning their car to friends for long trips, just to reduce the tax! I just leave my car on a rolling road for the whole weekend or drive to sydney twice a week :twitcy:. My biggest benefit was with the lafha claim and wree although as you are having your insurances paid for you it is a nice sweetener and may make the packaging inefficient although you can claim for laptops, office rent (home x 0.25%) e.g., my Work related expenses are 800 per week which reduces my weekly taxable income by that amount. Its not a hugh saving but better in my pocket each week than having to wait until the end of the year. Also, my agency did charge me a weekly fee (robbing bar stools) for there salary work so it made more sense to pay a little more than that but also glean some back. Link to comment Share on other sites More sharing options...
freebo Posted May 17, 2010 Author Share Posted May 17, 2010 I've a consultation with them tom to see what they can offer - will let you know what i find out. Good luck for Monday, i'm hopefully starting Weds!! yeah, please do let me know. I got the first day over with, good luck for Weds! Link to comment Share on other sites More sharing options...
kissofthegypsy Posted May 22, 2010 Share Posted May 22, 2010 Hello, I highly recommend avoiding CXC. Terrible company. I was with them for a year and found them very disorganised and expensive on the fees especially when it came to LAFHA. When it came to getting my 457, they were in a complete shambles. I found them careless at best and dishonest at worst - I had to change jobs as the visa situation was so bad! Avoid. Not sure who you dealt with but my experience has been completely different. Were never going to be any visa issues tho and the lafha stuff was a dream as some companies dont even offer it. Link to comment Share on other sites More sharing options...
Guest kingy79 Posted June 17, 2010 Share Posted June 17, 2010 Hi, I've had a consultation with CxC and they talked the talk but there prices were just too high and they would not budge! they wanted 4.5% which was a preferential rate!!!!i didn't find them that friendly and just pushing the fact that they were the market leader and no one could compete with their service. I found payme who charge 3% and are always responsive via email and phone ( freephone). They explained everything just as well and do exactly the same job as CxC - only differences that stood out for me was that provide free financial planning and money towards ACS creditation. The benefit is the LAFA, it really makes a difference and is defo worth it! All insurances are provided by Payme so all good me thinks! i can claim laptop, mobile and internet expenses as i work from home. The problem i can see is without the LAFA allowance which you can get for 2 years...will it be worth going with a payroll company once its gone? LAFA All the way! Link to comment Share on other sites More sharing options...
Guest kingy79 Posted June 17, 2010 Share Posted June 17, 2010 hey, sorry for the late reply... hows it going? did you stay PAYG or go with a mgt company? the LAFA allowance over the last 2 pays is a big help and i think worth doing! not sure on your experiences with aussies and work rate...but i find them very very slack! but hey, beats london! Link to comment Share on other sites More sharing options...
fish.01 Posted June 17, 2010 Share Posted June 17, 2010 there is also the option of forming your own Ltd co, which I've been operating in the UK for many years, AFAIK its not worth it here though, most of the perks can't be done (employing the wife, small salary big divs etc). As I said I'm brand new at this (start my first Australian contract in the morning) so I may be wrong! Didn't IR35 kill this in the UK....or was it rescinded or got around? Australia introduced similar IR35 style laws around the same time. Link to comment Share on other sites More sharing options...
freebo Posted June 17, 2010 Author Share Posted June 17, 2010 hey, sorry for the late reply... hows it going? did you stay PAYG or go with a mgt company? the LAFA allowance over the last 2 pays is a big help and i think worth doing! not sure on your experiences with aussies and work rate...but i find them very very slack! but hey, beats london! I can't get LAFA as I have Permanent Residency, its only for temp visa holders. As for the work rate, our lot work really hard, this is in a big Sydney investment bank. Maybe I should come to your place :wink: Link to comment Share on other sites More sharing options...
freebo Posted June 17, 2010 Author Share Posted June 17, 2010 Didn't IR35 kill this in the UK....or was it rescinded or got around? Australia introduced similar IR35 style laws around the same time. Not by half, it was very easy to get around, you could even insure against it. Link to comment Share on other sites More sharing options...
Guest kingy79 Posted June 17, 2010 Share Posted June 17, 2010 I can't get LAFA as I have Permanent Residency, its only for temp visa holders. As for the work rate, our lot work really hard, this is in a big Sydney investment bank. Maybe I should come to your place :wink: I'm a PR and getting LAFA!!!! who told you u couldn't? one of us must have duff info - if you dont have it and entitled to it, you are missing out big time mate! ah... would that be Mac Bank then! lol... Link to comment Share on other sites More sharing options...
kissofthegypsy Posted June 17, 2010 Share Posted June 17, 2010 I'm a PR and getting LAFA!!!! who told you u couldn't? one of us must have duff info - if you dont have it and entitled to it, you are missing out big time mate! ah... would that be Mac Bank then! lol... Does the tax man know, I CXC told me if I had PR my LAFHA would stop. Link to comment Share on other sites More sharing options...
Guest kingy79 Posted June 17, 2010 Share Posted June 17, 2010 Tax man knows! fill in a Tax form... select the box "i am a PR for tax purposes" and answer some other questions relating to having assets/family etc back in UK (proving you have not just giving it all up". CXC were the ones who told me i was entitlted!!! They are giving out mixed info so glad i did not go with them! If you buy a property then it obviously looks like you are putting down roots and it would have to stop! If you came it directly from UK and had a job already lined up, even better - you can claim the flights! I've just got here and was told you can claim for 2 years by CXC and my current payroll! Link to comment Share on other sites More sharing options...
kissofthegypsy Posted June 17, 2010 Share Posted June 17, 2010 Tax man knows! fill in a Tax form... select the box "i am a PR for tax purposes" and answer some other questions relating to having assets/family etc back in UK (proving you have not just giving it all up". CXC were the ones who told me i was entitlted!!! They are giving out mixed info so glad i did not go with them! If you buy a property then it obviously looks like you are putting down roots and it would have to stop! If you came it directly from UK and had a job already lined up, even better - you can claim the flights! I've just got here and was told you can claim for 2 years by CXC and my current payroll! Ah I understand. We are building a house now so it will stop this month. Damn, it was good while it lasted. :biglaugh: Link to comment Share on other sites More sharing options...
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