ODCO® Contracting - Contractor Benefits

THE AGENCY provides a legally sound, ATO recognised vehicle through which independent contractors can operate. We supply specific contractor administration services that can eliminate ABN, GST, BAS and other statutory administrative obligations. We organise these and other areas such as insurance, WorkCover and superannuation at no cost to contractors.

This information considers most of the questions we are asked by Australian based contractors. With this level of information you will be able to register under our obligation free expression of interest process.

Am I a contractor?

The word contractor is much confused and much misused. The basic starting point used by courts is the 'common law test'. In addition, a contractor can be assessed differently under different pieces of legislation. Our parliaments have created great confusion here. When you work as a contractor direct with a client your legal status can lack clarity. When you work through THE AGENCY your common law contact or status has been made solid through High Court rulings.

Do I need to register a company?

If sourcing works as a direct contractor most people seem to create and work through a company that they own. This then requires the lodgement of all the required company returns, including BAS, Annual Returns, etc. When you work through THE AGENCY a company structure is not necessary. Contractor status is assured.

Do I need an ABN?

An Australian Business Number (ABN) is not a test for being a contractor. An ABN is a tax collection and administration process designed to assist the ATO to collect tax. If you are a contractor being paid directly by your client's you probably do not need an ABN and to file the required returns. Working as a contractor through THE AGENCY you don't need an ABN although you can have one if you wish.

Do I need to worry about BAS return?

No! This is one of the great advantages of working as a contractor through THE AGENCY.

What about superannuation?

Payments made by THE AGENCY are not subject to the Superannuation Guarantee Act so we include a superannuation component in your $ rate. You may however make voluntary contributions to a superannuation fund at a rate of your choice to the fund of your choice. THE AGENCY can administer personal superannuation contributions on your behalf where instructed by you.

What about Workers Injury Insurance?

It is the desire of the agency that its contractors are covered in the event of an accident. The agency can arrange private Income Protection insurance at 2.5% of gross contractor earnings. Benefits payable in the event of accident at work or at home for accident or permanent disability is also included in the policy. The agency administers all premium payments on behalf of the contractor.

Who pays Income Tax?

If you are paid directly by your client, responsibility for income tax payments varies depending on your agreements. In working through THE AGENCY the statutory responsibility is clear. THE AGENCY is required to withhold tax from your payments and remit it to the ATO. You receive payment summaries from us.

Are there any taxation advantages?

As a self-employed independent contractor you may, subject to your accountant's advice, be eligible for tax deductibility not otherwise claimable if you were engaged as an employee. In general, Odco contractors are usually treated by the ATO as a Sole Trader. When withholding PAYG taxation, you may use the normal sliding PAYG scales or utilise THE AGENCYS ATO class withholding variation allowing PAYG to be deducted at flat rate of 20%.

Do I constantly have to change jobs to be a contractor?

When you work direct you probably need to work for different clients in a year to be sure of your contractor status. When operating through THE AGENCY you can work for one or as many clients as you wish without affecting your status.

Will THE AGENCY find work for me?

When you work direct you need to constantly promote your own services. When operating through THE AGENCY, we can offer your services to one of our many clients, of course your are not bound to accept any work offered to you.

What about Public Liability?

If you work as a direct contractor you have potential public liability exposure. Obtaining insurance can prove difficult and costly. We believe this insurance is important, so at THE AGENCY we have arranged a blanket $10 million public liability policy to cover you while you work. We deduct the premium contribution from your payment and it is shown on your regular remittance advice.

Are my payments guaranteed?

Absolutely! We are legally liable to pay you for work completely even if the client does not pay us. Our business is build on prompt payments.

WANT TO REGISTER AND WORK AS AN ODCO® CONTRACTOR THROUGH THE AGENCY?

The steps are simple:

1. Ask us about full level registration. Considerably more details will be provided.

2. Your contract specialists and remuneration are settled through an open process between yourself, each client and ourselves. Nothing proceeds without your agreement.

3. Invoicing and payments then occur as work is completed.