Guest onourway

Tax question for IT contractor on labour hire

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    Guest onourway

    Hi there, Does anyone have any idea whether agency fees are an allowable tax deduction when calculating income? Thanks in advance.

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    Guest Guest75

    At a guess I would say they are fully tax deductible as they are fully work related expenses???

     

    Does the ATO website have anything on on it??

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    Guest onourway

    Cheers Tyke - that's what we're thinking - sadly no, can't find anything on the ATO website - closest thing it mentions is union fees & they're deductable.

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    Do you mean you are working as an IT contractor through a recruitment agency? If so, why would you be paying agency fees? I have worked for a few agencies as a 'temp' and you don't need to pay anything, they pay you a hourly rate and your super and the employer pays whatever fee for your services to the recruitment agency.

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    I agree with Jessica - why would you be paying fees to an Agency? I used to be an IT contractor, albeit a long time ago, and never had to pay fees to an agency - sounds a bit dodgy to me.

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    Guest Guest5035

    perhaps the op is freelancing themselves getting the labour company to find them work as in self employed

     

     

    stevo

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    Guest Chris_J

    I'm on a 6 month contract through an agency and having to pay 1% insurance and 1.5 agency fee, I think it is like an umbrella company as they are paying my wages and sorting tax and super.

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    If the agency are sorting out tax and super will they not do your tax return and make sure they claim any deductions? My OH used something similar when he was contracting in the UK years ago and they basically did everything for him.

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