Advantages to an employee transferring to Agency Contracting:

• The agency Sickness and Accident policy is generally in advance of workers compensation benefits, applying at home as well as work. The policy provides 24-hour cover, 7 days per week.

• Business costs are generally tax deductible e.g. superannuation contributions, insurances, tools, clothing, perhaps travel etc.

• Flexible superannuation contribution rate, utilising a better performing, lower cost superannuation scheme.

• Prepaid sick leave and other Award entitlements.

• Payout of accumulated benefits in some cases.

• All administration is undertaken by the agency - there is no requirements to register an ABN or for GST. Tax, superannuation payments, insurances etc. all are deducted and paid by us on the contractor's behalf.

• Registration as a sole trader (costs $133 for 3 years registration and is portable)

• Tax can be set at a flat rate of 20% allowing more appropriate payment of actual taxation owed.

• There is no cost involved to the contractor other than a business registration fee of $133.

• Ability to earn more if sick leave, full annual leave or other entitlements are not taken.

• Ability to access productivity / incentive payments over and above traditional pay rates where negotiated.

Disadvantages

• Security of employment - unfair dismissal concerns.

• Redundancy issues.

These disadvantages are offset because under our Agency system, contractors are offered continuity of work (i.e. with different clients), as opposed to security with a single client. That is, if work is not progressing satisfactorily at a given site, we will look at placing contractors elsewhere, with other clients.