- Posted by Doqtorific Admin
- On September 1, 2018
- 0 Comments
- Locum Jobs, Locum Jobs Australia, Locum Tax Planning, Medical Career
Being a locum doctor is a fantastic career opportunity. It is a great way of enhancing your skills, traveling and exploring Australia, giving back to the community, and fulfilling important needs in isolated areas as well as having the freedom to set your own hours and shifts and still make money as a freelance doctor. Although there are a huge amount of positive aspects, there are some things that are important to be mindful of. So what are some of the most important rules to follow and things to be mindful of as a locum doctor?
Get Your Tax Structure Right
Working as a Locum doctor, you are in essence a contractor. As a freelance contractor, you not only have all the rights of a contractor such as the ability to accept or reject jobs, and other benefits, but you also have the responsibilities of a freelance contractor as well. One of the most important of those is to ensure that you have your Australian Business Number. As a contractor Locum doctor, you will be working independently which also means that you will be taxed independently. Instead of having taxes withheld from your business or directly from your employer, you will be responsible for filing your own taxes, and this is why it’s important to have an Australian Business Number.
To even be hired as a Locum doctor, you must have this number. No matter where the practice is or who staffs it, part of the application and acceptance process is to have your Australian Business Number ready for all private practices that require it. It is necessary upon them to ensure that the freelance Locum doctors they have hired have their Australian Business Number so getting this number is an early step in your Locum doctor career.
Getting your Australian Business Number is not difficult though. Simply talk to your accountant or set up one directly via the Australian Business Register.
Working as a freelancer also means that paying taxes by yourself is something that you are required to do as it will not be done for you automatically. Making sure that all your forms and tax records are in accordance with all Australian Tax Office rules is an essential element for success. Not paying your taxes can lead to heavy penalties, fines, and potentially even legal action.
For instance if you were to make over $75,000 a year as a Locum doctor, you would have to file for a goods and service tax in addition to your standard taxes. This goods and service tax is approximately 10% and is in addition to other taxes you may pay. As a Locum doctor it is very easy to find yourself well over that threshold. Locum doctors can generate large sums of revenue and so being mindful of your tax requirements and having an awareness of the Australian tax system is an important part of your continued success.
Conversely, however, if you stay below $75,000 you do not have to file the goods and service tax. This is why it’s important if you’re going to use programs like Doqtorific to also ensure that you have a tax plan in mind. Again since your taxes are not withheld automatically, you will have to file quarterly business reports and ensure that you have enough money at the end of the year to pay all your taxes due to the Australian Tax Office.
This can sometimes be a weary concept for individuals new to paying their own taxes and it may be you will need to enlist the services of a professional accountant. Still, despite needing to keep compliance measures in mind, working as a Locum doctor is a great way of earning additional income. Being mindful of your tax burden and what is due to the Australian Tax Office is a small price to pay for the myriad of benefits available to Locum doctors in Australia. So be sure to ask for help when you need it, and get your ABN, and then download Doqtorific to get started on your new career.