• Obtaining work through an agency

    If you're contracting through an agency, where the agency provides your services to a client, the agency will ultimately be responsible for your remuneration.


    If you're an employee earning only salary and wages, you are not affected by the PSI rules. There are a number of factors that determine whether you're working as a contractor or as an employee (see Employee or contractor - what's the difference).

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    Example: a contractor or consultant, working through a business that obtains work through an agency

    Joe creates a company called Joe's Enterprises Pty Ltd.

    His company contracts with Labour Hire Ltd who offers Joe's services to their clients. Joe is required to perform work for and at the direction of the agency's clients. Labour Hire Ltd provides Joe's services to Phone Corporation Ltd as a consultant.

    Phone Corporation Ltd pays Labour Hire Ltd for Joe's services.

    Joe's Enterprises Pty Ltd receives 100% of its income from Labour Hire Ltd.

    End of example

    An agency can be called different names, including:

    • labour hire firm
    • on-hire
    • employment agent/agency
    • contract management
    • recruitment services
    • group training organisations.
      Last modified: 14 Sep 2016QC 46087