Here at People Medical Consulting we like spreading what we know and giving you a clear pathway to your career. We’re answering a different question each week based on queries raised via our Facebook & Instagram profiles.
THIS WEEK’S QUESTION…?
A GP can work as a contractor rather than an employee?
What does this mean?
In a lot of cases (not all!), a General Practice will have their GPs join them as contractors on a services agreement, rather than an employee with an employment contract.
What is the difference?
An employee is entitled to annual leave, sick leave, superannuation and their tax is taken from their pay prior to it being transferred to them, and paid to the government via your employer.
A contractor does not get these benefits, managing their own insurances and taxes. Essentially, you are ‘renting a room’ from the medical practice and they are providing you reception and nursing services.
Why is it done this way?
That’s a good question. GP clinics pay doctors this way because the amount of money you earn will be directly related to the number of patients you see. This is very different to working in major hospitals where you are paid for your time irrespective of the number of patients you care for.
What should I do if I’m moving from an employee position to a contractor one?
There are a lot of things to consider, such as registering for GST and getting the right structure in place. It is important that you start planning for the fact that you will be looking after your own taxes and this can come as a complete surprise if you don’t plan carefully. Make sure you speak to an accountant who has an understanding of the medical industry and how working under a services agreement works as a General Practitioner.
How Can We Help?
Our team help General Practitioners both with finding jobs and helping with the full applications process including finding the best pathway to fellowship for you and your life goals. If we can help, please contact us at email@example.com.
With many thanks to Robert King from Innova Accounting Group who provided valuable information for this question. Innova specialise in accounting for Medical Practitioners and are super lovely as well!
People Medical Consulting are a team of professionals with a passion for guiding those specialising in the Medical industry to find their career pathway and settle into Australia. Working with both Australian trained and Overseas trained professionals, we have extensive experience in Recruitment of General Practitioners, and Document Assistance for those requiring support with RACGP, AHPRA, 19AA and 19AB Medicare Exemptions.