Guys,
I'm currently working in a full time position for a fairly large company in Queensland but I've just been offered a job in WA (living in Brisbane) on a contract basis. The contract will be for a couple of years and may then become permanent.
The contract job pays considerably more than my current one and I was looking at ways to cut the amount of tax I pay. I'm from the UK and have been in a similar position before and used a tax company to set up a limited company in my name (the wife and I were shareholders and were paid dividends, etc.) and it definitely saved me a tidy sum.
So, is there a similar method in Oz? Obviously I will get some proper advice from a Tax Accountant but I was wondering if anyone could point me in the right direction or at least give me a heads up on what expenses I can claim back - travel, accomodation, food, etc.
What type of contract position is it? Fixed term or independent?
Given it's multi year I'd wager it's fixed term which will mean you're paid and employed in the same way as a permanent employee (normal payroll, employer pays your payroll tax, you get leave entitlements etc) for a fixed period. If that's the case your pay/tax arrangements are no different than they are now - you simply get paid more because your employer is taking less risk by employing your position for a fixed term and thus only has to budget for it for a fixed term.
Paying a company/trust etc would only be possible if you were an independent contractor and there are a heap of other considerations if that's the case (tax and reporting obligations for one).
As for what deductions you can claim, it depends entirely on your role/industry. Depending on your industry and employer you may also have access to a Salary Sacrifice scheme which is definitely a perk to look into.