To conduct your business as an hourly rate contractor through a Labour
Hire Firm such as Commercial Design, certain aspects as to your suitability
needs to be established first; we cannot act upon acquiring this information
unless approval is given in the form of a signed Privacy
Following are a few sample questions relating to Federal and State laws that regulate your company / business entity when engaged through a Labour Hire Firm..
Q:I'm a partnership with ABN and GST registration, can I register for work through a Labour Hire Firm (LHF)?
A: No! ..WorkCover Authority of NSW: You're required to be covered for Workcover, a Partnership in NSW is unable to get workcover for its directors and the LHF can not cover them as the Partnership supplies GST invoices and as such are not Wage earners. Partnerships need to incorporate (Pty Ltd) or revert to a individual status (soleTrader)
trader/proprietor and Partnerships in NSW
WorkCover Authority of NSW :More
Q: I'm a sole trader/ individual with an ABN and registered for GST, how am I engaged through a Labour Hire Firm?
A: ATO directive; a sole trader/ individual cannot give the LHF (Labour Hire Firm) GST invoices: they are engaged as sole traders under a labour hire arrangement and need to supply their Tax file number, they are taxed PAYG for an individual.
Refer ATO pdf More
Q:I'm a contractor with my own registered business (Pty Ltd), what insurances do I require?
A: You require Workcover and Public liability as a minimum, it is also desirable if trading as an Engineer to have Professional Indemnity.
A major consideration should be Income Protection Insurance, you nominate an income you require per week to cover for loss of work because of a non work related injury. This will safeguard your life style untill able to resume work.
Q:Who pays payroll Tax?
A: Payroll tax (5.45%) is a statuary obligation if gross income of a business exceeds $689,000.00 in 2012/2013 finacial year in NSW.
Clients engaging DIRECT contractors are responsible for Payroll Tax attributed to each direct contractor. The client can't relinquish responsibility to the contractor as the contractors gross income is below the threshold. Someone needs to pay the tax, the responsibility is the clients. Heavy fines imposed if payroll tax not paid.
Agencies include Payroll Tax in their charge to Clients. If clients are under the threshold then they are required to supply a statuary declaration to that effect and the tax is not applied.
Q: I'm a non resident (holder of a student or Working Holiday 417 Visa), how am I taxed?
A: "GOOGLE" income Tax rates for non residents... click on a ATO.Gov.au web site that will give you "Individual income Tax rates".If in Australia on a working visa you are taxed as a non resident (every $ earned is taxed), if a student and here for in excess of 6 months you can be taxed as a resident. refer to Gov web site for detailed explanations.
It is an illegal act for a Labour Hire Firm to engage hourly rate contractors without the appropriate Workcover; certificates of currency are required from contractors coming through an incorporated businesses, all other contractors are deemed for the purposes of the act to be employees of the LHF and so are covered for Workcover by the LHF.
The information provided here is a guide only and we accept no responsibility for errors, omissions or accuracy.
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