Video #10 Independent Contractors
It is not uncommon for real estate agencies to hire contractors to perform duties for the business rather than hire employees. There are benefits to be derived by both parties in such arrangements for example, cost savings by the principal or flexibility and tax planning for the contractor. That being said, caution is still advised when considering such agreements. There are certain requirements that the Contractors need to be aware of when operating for themselves for example, Contractors need to be careful when signing agency agreements that they sign in conjunction with the Principal Agent as the Australian Taxation Office requires that 20 percent of the income must be derived from another source other than the principal agent.
For more information please watch our short video.