Two Contractor Types. Job Seekers looking for Contract work have the option to work under one of two arrangements and should seek advice from their accountant in relation to each:

• Business Contractor: Business Contractors have their own Proprietary Limited (Pty Ltd) company or Registered Business and are engaged under a contract called a Consulting Services Agreement. Business Contractors are required to invoice GMT Recruitment each pay period and are responsible for managing their own payroll and taxation affairs, including GST payments, PAYG withholdings, superannuation payments and company tax (if applicable).
• Pay As You Go (PAYG) Contractor: PAYG Contractors effectively function as a temporary employee of GMT Recruitment for the duration of their contract. They are engaged under a contract called an Employment Contract. PAYG Contractors automatically receive their fortnightly pay as per any normal employment arrangement. GMT Recruitment automatically deducts PAYG withholding tax (income tax) and superannuation contributions from the contractors rate and remit them on the PAYG Contractor's behalf, details of which are provided on Pay Slips.

Personal Services Income. Prior to making a decision on your preferred method of engagement, GMT Recruitment strongly advises you to speak to your Accountant or Taxation Law Specialist in relation to the Australian Taxation Office's rulings in relation to Personal Services Income. If you nominate to be engaged by GMT Recruitment as a Business Contractor, we will assume that your enterprise is entirely managing its own affairs in accordance with all statutory and regulatory requirements.

Further Information There is a significant amount of information on contracting and consulting located on the Australian Taxation Office's website at www.ato.gov.au and it is reiterated that anyone thinking of working as a contractor should seek professional advice prior to entering into any contractual arrangements.