It is important in this discussion to distinguish between a Employment
Agency and a Contract Manager.

Most agencies are expensive.  10-20% as mentioned (if not more).  A
Contract Manager is very different in that the only work they do is
the collection and distribution of the contract monies for which they
charge the CONTRACTOR a fee (it is all very open and above board). 
They don't do any of the placement work and they don't have a high
level of mouths to feed (in the form of Employment Consultants).

So the rates that Scott and Gavin are talking about are quite sensible
for such an organisation (versus an Employment Agent).  And within
that fee, they cover things such as Public Liability, Workers
Compensation, PAYG, Expenses, etc.  It's a very good deal if you dont
want the overhead of running your own company but it is still
legitimate with the ATO because - for the term of the contract - the
contractor is an employee of the Contract Manager (or one of their
subsidiary companies).  Another plus is that they are able to be
across changes to taxation laws better than a small business person
would be.


Regards,
Gary Menzel

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