Managing your finances on top of a busy medical role or locum job can be tricky, and many doctors find themselves weighed down by burdensome details such as income tax, GST and superannuation.
Here, we cover some of the common finance questions we get asked by the doctors we work with to explain everything you need to know about managing your finances as a doctor, as well as your options and where to turn for specific advice.
1. How Often Do Locums Get Paid?
Our payment runs are fortnightly on a Friday and as long as your approved timesheet is received before 12pm on the Thursday before pay day, it will be included in the payment run. We understand it’s not always possible to get a timesheet signed so we are always happy to help if needed. We ask you to submit your timesheets weekly to ensure everything is up to date come payment day. Furthermore, we will always process it straight away, therefore not waiting for the next pay cycle.
2. Do Locums Need To Be Registered For GST?
In New Zealand, you can choose to register for GST at any point but are required to register if your turnover is going to be more than $60,000 per financial year (this doesn’t include any earnings gained as an employee).
In Australia, if you are being paid directly by the hospital payroll or by Triple0 through our Labour Hire Arrangement, GST isn’t applicable. If you are working under an ABN as either a Sole Trader (paid by a third party) or as a Company, the threshold for being registered for GST is if your turnover is going to exceed $75,000. Your accountant or tax agent will be able to give you more advice on this.
3. Do I Need To Set Up A Company To Be A Locum?
No, you do not need to, but you can if you wish. Your accountant or tax agent can help you determine the best option for your situation. If you do not have a Limited Liability Company, you can work as a Sole Trader and it’s as simple as filling out the Triple0 NZ Locum Financial Form.
4. Do Recruitment Companies Pay Tax On My Behalf?
Due to legislation changes around Schedular Payments in New Zealand, recruitment companies are now required to deduct withholding tax (PAYE) and pay this to the IRD on your behalf. For more information, please see the Getting Paid for your Locum Work guide.
When working in Australia through Triple0, there are several ways you can be paid. If you have a Company ABN, we pay you the gross amount and all PAYG and Super deductions are left to you. We also work with doctors who prefer to be paid via a third-party company such as Geoffrey Nathan. If you do not have a Company ABN, you can be paid by Triple0 under a Labour Hire Arrangement. We will deduct PAYG on your behalf and pay this directly to the ATO, and your Super will be paid into your nominated Super Fund.
5. Can I Get Specific Tax Advice?
Unfortunately, we are not able to give specific tax advice, but we do have accountants and tax agents we can recommend who can give advice specific to your circumstances. Reach out to our team for more information.
6. Is GST Included In The Pay Rates?
No, the pay rates are quoted excluding GST. If you are registered for GST, this will be added on top of your rates. If you are not registered for GST, no GST will be applied.
If you have any questions not answered here, need further financial advice or want to learn more about working as a doctor with Triple0, get in touch with us today. As a specialist Medical recruitment agency, we are committed to finding rewarding opportunities for doctors in a diverse range of hospitals and practices throughout Australia and New Zealand. Whether you want to work as a locum or take a permanent role, we can help you find the right perfect option for you.
