Why do some agencies pay me as an ABN sole trader and others as PAYG?

These payment options will depend on the employer’s internal procedures, Australian / Trans Tasmin taxation laws, Work Health and Safety (WHS) and State based labour hire legislation.

For example, in Queensland and Victoria where labour-hire licensing legislation exists, agencies need to have the necessary insurances and labour hire licences to supply casual workers. Mandatory on-hired worker reporting and large fines may be incurred if rules aren’t followed accordingly.

In these states, ABN Sole Traders are considered employees of the on-hired locum agency. As the employer, we therefore have a responsibility to ensure both tax and superannuation is paid accordingly.

We understand that a locum doctor may have a preference on how they wish to be paid and we will try to accommodate requests where possible. However, our priority is to be transparent in our dealings and comply with WHS and labour hire legislation to minimise risk for all parties.