“Recruiting world class doctors across Australia”

As a locum doctor in Australia, you will tend to be paid an hourly or daily rate for your hard work.

However, the various types and pay and process for each State, local health district or health service region or even hospital can vary dramatically and be as complex as breaking the Da Vinci Code.

Blugibbon feels your pain so here is our best attempt at demystifying the world of locum doctor pay for Australian public health services in plain English:

NEW SOUTH WALES

Who pays who?

The Hospital / Local Health District (LHD) pays the Doctor directly to their bank account on receipt of an authorised timesheet.

How long does it take to get paid?

Generally if all paperwork is correct it can take up to 28 working days.

Please note if you have credentialing paperwork missing or similar that has not been provided to the agency this can hold up you being paid.

What pay options are there?

For Specialists / Consultants – the majority of the time it is via Pay As You Go (PAYG), this system withholds income tax from a contractor’s salary or wages. However, some individual Hospitals / LHDs have an option called VMoney which allows Doctors with an Australian Business Number (ABNs) to be paid by Tax Invoice (please always ask the agency this before accepting locum shifts).

For Junior Doctors / Registrars – via Pay As You Go (PAYG), this system withholds income tax from a contractor’s salary or wages.

QUEENSLAND / VICTORIA / TASMANIA / AUSTRALIAN CAPITAL TERRITORY / NORTHERN TERRITORY

Who pays who?

The agency will generally always pay the Doctor directly to their bank account on receipt of an authorised timesheet and / or an ABN Tax Invoice.

How long does it take to get paid?

Depending on the agency you are engaged through this could be weekly or fortnightly, if you are submitting an authorised timesheet and ABN Tax Invoice promptly each week (Blugibbon have a weekly payroll function that runs like clockwork).

What pay options are there?

For all Doctors you can be paid either by (1) PAYG or by (2) PTY LTD or Family Trust ABN.

Bear in mind that all rates are usually inclusive of superannuation for PAYG and generally if you are registered for GST you can charge this if paid via ABN on top of the hourly / daily rate.

Please also note that according to ATO guidelines on on-hire labour agreements recruitment agencies cannot pay Sole Trader ABNs, and can only pay PTY LTD or Family Trust ABNs.

SOUTH AUSTRALIA

Who pays who?

The Hospital / Area Health Service pays the Doctor directly to their bank account on receipt of an authorised timesheet and / or Tax Invoice.

How long does it take to get paid?

Depending on the agency you are engaged through this could be weekly or fortnightly, if you are submitting an authorised timesheet and ABN Tax Invoice promptly each week (Blugibbon have a weekly payroll function that runs like clockwork).

What pay options are there?

For all Doctors you can be paid either by (1) PAYG or by (2) PTY LTD or Family Trust ABN or by (3) Sole Trader ABN.

It is important to note South Australia can pay Sole Trader ABNs but this will incur a 9.50% superannuation deduction if theDoctor opts to be paid this way.

If paid via PAYG all rates are inclusive of superannuation.

How locum doctors get paid

WESTERN AUSTRALIA

Who pays who?

The Hospital / Regional Health Service pays the Doctor directly to their bank account on receipt of an authorised timesheet and / or ABN Tax Invoice.

It is important to note that as of 2020, Western Australia can pay Sole Trader ABN but it is the Doctor’s responsibility to gain appropriate tax advice from their Accountant and / or Financial Advisor before doing so.

How long does it take to get paid?

Generally if all paperwork is correct it can take up to 28 working days.

What pay options are there?

For all Doctors you will need to be paid via ABN, either PTY LTD ABN, Family Trust ABN or Sole Trader.

Bear in mind if you are registered for GST you can charge this on top of the hourly / daily rate.

Other Important Information

Please make sure you get a great Accountant and / or Financial Advisor as it is the Doctor’s responsibility to gain appropriate tax advice. If you do not have one, ask us at Blugibbon and we may be able to suggest a trusted contact.

Some other variables and things to watch out for and ask about are paid or unpaid breaks, overtime rates and on-call rates, this again can vary dramatically for each and every one of your locum assignments, so its best to be crystal clear before heading off on your locum adventure!

If you want to chat more about the above do not hesitate to get in touch with Blugibbon on [email protected] or 02 8960 6445.

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