Close cross icon.

3 Ways to Contract

One of the key advantages of contracting is choice. As a Clicks contractor you have three different contracting options to choose from:

  • Contracting as a PAYG Contractor
  • Contracting as a Pty Ltd Company
  • Contracting through a Management Company

Which Option?

In choosing the right option for you, be sure to consider your personal and financial circumstances carefully before making any decision.

We also recommend that you fully discuss the options with your accountant and/or financial planner well before you accept a contracting role.

If you are a permanent resident of Australia you are able to freely choose from any of the three options, whereas the majority of non-residents choose the Management Company option.

If you have any questions or would like more detailed information on the different contracting options, please contact your Contractor Care Consultant.

Option 1 – PAYG Contractor

PAYG is an ideal option if you prefer the simplicity of Clicks managing all the time-consuming and costly administration tasks associated with being a Pty Ltd contractor.

As a PAYG (Pay As You Go) contractor, we take care of everything on your behalf including:

  • Processing your pay
  • Emailed pay advices
  • Remitting PAYG tax to the ATO
  • Deduction and payment of other amounts to Government agencies (e.g. HECS)
  • Administering Superannuation to the fund of your choice
  • Monthly payment of Superannuation (legislation just requires quarterly)
  • Salary sacrifice of additional Superannuation contributions
  • Issuing your annual payment summary in the first week of July
  • Covering the administration costs for Workers Compensation cover
  • Administering all Workers Compensation claims
  • Administering $10m of Professional Indemnity and $20m of Public Liability Insurance

Before You Start… All you need to do is visit your local Clicks office, sign the relevant documents and you’re ready to begin your contract!

Option 2 – Pty Ltd Company

Pty Ltd contracting is an ideal option if you prefer the flexibility and control of running your own company.

As a Pty Ltd contractor you contract through your own proprietary limited company and need to:

  • Work with your accountant to set up the company
  • Register for GST
  • Procure and administer Workers Compensation insurance
  • Acquire Professional Indemnity and Public Liability insurances
  • Administer your own Superannuation
  • Complete BAS statements as required
  • Prepare statutory accounts and pay for associated costs
  • Contract under the increasing legislative challenges associated with the Alienation of Personal Services Income test (also known as the 80/20 rule)

What Costs Are Involved? Contracting as a Pty Ltd contractor involves a significant cost and time investment. Before choosing this option you should first carefully consult with your accountant.

Before You Start… After setting up your company, simply visit your local Clicks office bringing proof of ABN, Workers Compensation, Professional Indemnity and Public Liability Insurances and you’re ready to begin your contract.

Option 3 – Management Companies

Management companies are ideal for high earning contractors who can afford the fee structures and want many of the same financial benefits of Pty Ltd contracting, without all the associated risks and time spent administering a company.

Contractor Management companies specialise in providing support services to independent contractors. Management companies will:

  • Provide you with a company tax structure to work under
  • Act as your own tax expert
  • Take care of all administration and back office support on your behalf
  • Maximise your tax position
  • Cover you for Workers Compensation, Public Liability and Professional Indemnity insurances

What Costs Are Involved? Contractor Management companies charge tax-deductible fees of around 5% per annum.

Before You Start… Make sure that you have selected a Contractor Management company and registered with them. We will need this information to ensure you are paid as quickly as possible before you start working with us.

More Career Advice

How to Ask Your Boss for Mental Health Leave

Feeling stressed or burnt out? It’s not surprising when we consider the ongoing global pandemic, continued skills shortages across many industries, rising costs of living, and looming prospect of a recession. It’s like a pressure cooker, and the strain spills into workplaces. A global workplace report shows employee wellbeing has stalled since COVID-19 began, and…

Read More

Permanent vs. Contract Jobs – Which are Better?

Are you tossing up between a contract engagement and a permanent job? The reality is that there are pros and cons to both options. So, if you are wondering if the grass is greener on the other side, we’re here to tell you it’s a matter of perspective. What may look fluoro-green and wonderful to…

Read More

How to Write a Resignation Letter

Resignation Letter Template Provided – Australia 2022 Whilst it may sound old-fashioned in this day and age, if you are leaving a job you do still need to provide your employer with a signed letter of resignation. So, here’s how you do it. A resignation letter should be positive and professional. After all, it’s a…

Read More


Level 35
360 Collins Street
Melbourne VIC 3000

T | 03 9963 4888


Level 13
333 George Street
Sydney NSW 2000

T | 02 9200 4444


Level 8
127 Creek Street
Brisbane QLD 4000

T | 07 3027 2555


Level 9
224 Bunda Street
Canberra ACT 2601
PO Box 129
Civic Square, ACT 2608

T | 02 6202 7700

Scroll to top arrow.