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Anonymous
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Just bringing this post back to life…

I will likely engage as a sole trader with ABN at an agreed hourly rate of $X

I can either choose to provide my own PI insurance (very expensive) or be covered by their PI insurance policy, which is $3/hour off the hourly rate. I’ll probably choose the latter

Therefore, my hourly rate = $X-3.

They mention that if I provide an ABN as a sole trader, they are required to withhold superannuation (9.5%) as well as my income tax component, and remit these to the ATO on my behalf.

They also mention that If I don’t provide an ABN, I am essentially a PAYG, with super and tax withheld as required by ATO (which is basically like being an employee I suppose).

If I engage as a sole trader then (or PAYG for that matter), would that mean my super contribution (S) is 9.5% of ($X-3) or 9.5% of $X ? (i.e. inclusive/exclusive of the PI insurance). Also, should I push for super being included on top of the hourly rate?

If super (S) is included in the total hourly rate, would my hourly rate therefore be:
$(X-3) – S (plus GST) ?

If they are remitting everything to the ATO on my behalf, what then do I have to remit to the ATO? Just the GST component via BAS?

Many thanks!