Independent Contractors / Consultants- Financial Benefits
In addition to the day-to-day operating benefits, there are significant financial benefits associated with working with Cofficient. Contact Cofficient directly to discuss your financial benefits in detail.
Scenario One
Scenario 1 is based on a contract of $120 000 pa. The Member/Associate draws a salary of $60 000, and incorporates a $25 000 leased motor vehicle. Other deductions of $4000 are included, and private rental of $400 per week is taken into consideration. The Member/Associates' spouse is not working in this scenario.
In this scenario, the Member/Associate will have $292 more disposable income per week than if they had PAYG deducted by their client or agency. In addition, if the Member/Associate is working away from their home location, a further surplus of $120 per week is achieved.
The following table shows a comparison between:
A. A contractor who is not working with Cofficient; PAYG is deducted at source,
B. A Cofficient Member/Associate,
C. A Cofficient Member/Associate who is temporarily living away from home.
|
A
PAYG Deducted
at Source by
Client or Agency
|
B
Cofficient Member/
Associate
|
C
Cofficient Member/
Associate
(temporarily living
away from home) |
|
|
|
|
| Gross Weekly Package |
2,308 |
2,308 |
2,308 |
|
|
|
|
| less: Salary |
- |
1,154 |
1,154 |
| less: Superannuation (8%) |
171 |
85 |
85 |
| less: Allowable Deductions |
80 |
80 |
80 |
| less: Cofficient Management fee |
- |
69 |
69 |
| less: Packaged Motor Vehicle |
- |
252 |
252 |
| less: Packaged Rent |
- |
- |
400 |
| Company Expenses |
251 |
1640 |
2040 |
|
|
|
|
Gross Weekly Package
less allowable deductions |
2,057 |
668 |
268 |
|
|
|
|
| less: Weekly Tax Company |
- |
200 |
80 |
| Net Package (1) |
2,057 |
468 |
188 |
|
|
|
|
| Salary (2) |
- |
1,154 |
1,154 |
|
|
|
|
| less: Weekly Tax (Salary) |
755 |
317 |
317 |
| less: Motor Vehicle Costs |
230 |
- |
- |
| less Rent |
400 |
400 |
- |
| Non-Company Expenses (3) |
1,385 |
717 |
317 |
|
|
|
|
| Available Cash after tax (1+2-3) |
672 |
905 |
1,025 |
|
|
|
|
| Add refund from ITR spouse |
- |
59 |
59 |
|
|
|
|
| Total Weekly Cash Available |
672 |
964 |
1,084 | |
Note: The variation in motor vehicle costs between situation (A) and situations (B) and (C) is due to Fringe Benefits Tax.
Scenario Two
Scenario 2 is based on a contract of $77 000 pa. The Member/Associate incorporates a $25 000 leased motor vehicle, and other deductions of $4000 are included. Private rental of $400 per week is also taken into consideration.
In this scenario, the Member/Associate will have $86 more disposable income per week than if they had PAYG deducted by their client or agency. In addition, if the Member/Associate is working away from their home location, a further surplus of $178 per week is achieved.
The following table shows a comparison between:
A. A contractor who is not working with Cofficient; PAYG is deducted at source,
B. A Cofficient Member/Associate,
C. A Cofficient Member/Associate who is temporarily living away from home.
|
A
PAYG Deducted
at Source by
Client or Agency
|
B
Cofficient Member/
Associate
|
C
Cofficient Member/
Associate
(temporarily living
away from home) |
|
|
|
|
| Gross Weekly Package |
1,481 |
1,481 |
1,481 |
|
|
|
|
| Salary |
1,481 |
1,481 |
1,481 |
| less: Superannuation (8%) |
118 |
80 |
51 |
| less: Allowable Deductions |
80 |
80 |
80 |
| less: Cofficient Management fee |
- |
58 |
58 |
| less: Packaged Motor Vehicle |
- |
252 |
252 |
| less: Packaged Rent |
- |
- |
400 |
| Company Expenses |
198 |
470 |
841 |
|
|
|
|
Gross Weekly Package
less allowable deductions |
1,283 |
1011 |
640 |
|
|
|
|
| less: Weekly Tax (Salary) |
378 |
250 |
101 |
| less: Motor Vehicle Costs |
230 |
- |
- |
| less Rent |
400 |
400 |
- |
|
|
|
|
| Total Weekly Cash Available |
275 |
361 |
539 | |
Note: The variation in motor vehicle costs between situation (A) and situations (B) and (C) is due to Fringe Benefits Tax.
|
Contents
Operating Benefits
- Effective Financial Management
- Efficient Operating Processes
- Time Savings & Lifestyle Benefits
- Choose the option that best suits you!
Financial Benefits
- Scenario One
- Scenario Two
Calculate Your Benefits
|
